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Bank lending technologies and credit availability in Europe: What can we learn from the crisis?

Giovanni Ferri, Pierluigi Murro (), Valentina Peruzzi () and Zeno Rotondi

Journal of International Money and Finance, 2019, vol. 95, issue C, 128-148

Abstract: Using a unique sample of European manufacturing firms, we empirically investigate how bank lending technologies nd soft information adoption affected firms’ credit availability during the 2007–2009 financial crisis. Estimation results indicate that transactional lending technologies increased firms’ credit rationing, whereas soft information mitigated asymmetric information problems and improved firms’ access to credit. By looking at the combined effect of bank lending technologies and soft information, we also provide evidence about the complementarity between transactional lending techniques and soft information adoption. When soft information was incorporated in transactional lending technologies firms’ credit rationing significantly reduced. This result is especially strong for small borrowing firms and for companies matching with large financial institutions.

Keywords: Lending technologies; Soft information; Credit rationing; Financial crisis (search for similar items in EconPapers)
JEL-codes: G21 D82 G30 O16 (search for similar items in EconPapers)
Date: 2019
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Related works:
Working Paper: Bank lending technologies and credit availability in Europe. What can we learn from the crisis? (2018) Downloads
Working Paper: Bank lending technologies and credit availability in Europe. What can we learn from the crisis? (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:95:y:2019:i:c:p:128-148

DOI: 10.1016/j.jimonfin.2019.04.003

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