Bank Lending in the Knowledge Economy

Giovanni Dell’Ariccia, Dalida Kadyrzhanova, Camelia Minoiu and Lev Ratnovski
Authors registered in the RePEc Author Service: Giovanni Dell'ariccia

The Review of Financial Studies, 2021, vol. 34, issue 10, 5036-5076

Abstract: We study the composition of bank loan portfolios during the transition of the real sector to a knowledge economy where firms increasingly use intangible capital. Exploiting heterogeneity in bank exposure to the compositional shift from tangible to intangible capital, we show that exposed banks curtail commercial lending and reallocate lending to other assets, such as mortgages. We estimate that the substantial growth in intangible capital since the mid-1980s explains around 30% of the secular decline in the share of commercial lending in banks’ loan portfolios. We provide suggestive evidence that this reallocation increased the riskiness of banks’ mortgage lending.

JEL-codes: E22 E44 G21 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Bank lending in the knowledge economy (2020)
Working Paper: Bank Lending in the Knowledge Economy (2020)
Working Paper: Bank Lending in the Knowledge Economy (2018)
Working Paper: Bank Lending in the Knowledge Economy (2017)
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