Interbank Liquidity Crunch and the Firm Credit Crunch: Evidence from the 2007--2009 Crisis
Jose-Luis Peydro (),
Samuel da-Rocha-Lopes and
Antoinette Schoar ()
Authors registered in the RePEc Author Service: Samuel Da-Rocha Lopes
Review of Financial Studies, 2014, vol. 27, issue 1, 347-372
We study the credit supply effects of the unexpected freeze of the European interbank market, using exhaustive Portuguese loan-level data. We find that banks that rely more on interbank borrowing before the crisis decrease their credit supply more during the crisis. The credit supply reduction is stronger for firms that are smaller, with weaker banking relationships. Small firms cannot compensate the credit crunch with other sources of debt. Furthermore, the impact of illiquidity on the credit crunch is stronger for less solvent banks. Finally, we find no overall positive effects of central bank liquidity but instead higher hoarding of liquidity. The Author 2013. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: email@example.com., Oxford University Press.
References: Add references at CitEc
Citations View citations in EconPapers (103) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Interbank Liquidity Crunch and the Firm Credit Crunch: Evidence from the 2007-2009 Crisis (2013)
Working Paper: Interbank liquidity crunch and the firm credit crunch: Evidence from the 2007-2009 crisis (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:rfinst:v:27:y:2014:i:1:p:347-372
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review of Financial Studies is currently edited by Maureen O'Hara
More articles in Review of Financial Studies from Society for Financial Studies Oxford University Press, Journals Department, 2001 Evans Road, Cary, NC 27513 USA.. Contact information at EDIRC.
Series data maintained by Oxford University Press ().