Non-bank lending during crises

Iñaki Aldasoro, Sebastian Doerr and Haonan Zhou

No 1074, BIS Working Papers from Bank for International Settlements

Abstract: This paper shows that non-banks curtail their syndicated credit by significantly more than banks during crises, even after accounting for time-varying lender and borrower characteristics. We provide novel evidence that differences in the value of lending relationships explain most of the gap: unlike for banks, relationships with non-banks – whether measured by duration or intensity – do not improve borrowers' access to credit during crises. The rise of non-banks could therefore lead to a shift from relationship towards transaction lending and exacerbate the repercussions of financial crises.

Keywords: Non-banks; syndicated loans; financial crises; financial stability; relationship lending (search for similar items in EconPapers)
JEL-codes: F34 G01 G21 G23 (search for similar items in EconPapers)
Date: 2023-02
New Economics Papers: this item is included in nep-ban, nep-fdg and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Non-bank lending during crises (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:1074

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