Distressed Banks, Distorted Decisions?

Gareth Anderson (), Rebecca Riley and Garry Young
Additional contact information
Gareth Anderson: University of Oxford

No 1908, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: Exploiting differences in pre-crisis business banking relationships, we present evidence to suggest that restricted credit availability following the 2008 financial crisis increased the rate of business failure in the United Kingdom. But rather than "cleansing" the economy by accelerating the exit of the least productive businesses, we find that tighter credit conditions resulted in some businesses failing despite being more productive than their surviving competitors. We also find evidence that distressed banks protected highly leveraged, low productivity businesses from failure.

JEL-codes: D22 D24 G21 G30 L10 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2019-04
New Economics Papers: this item is included in nep-ban and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2019-08-Paper.pdf (application/pdf)

Related works:
Working Paper: Distressed banks, distorted decisions? (2019)
Working Paper: Distressed Banks, Distorted Decisions? (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfm:wpaper:1908

Access Statistics for this paper

More papers in Discussion Papers from Centre for Macroeconomics (CFM) Contact information at EDIRC.
Bibliographic data for series maintained by Helen Power ().