Bank Lending in the Knowledge Economy

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

No 12994, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms increasingly use intangible assets. We show that higher corporate investment in intangible assets slows down banks' commercial lending. Banks reallocate the resulting lending capacity to other assets, notably mortgages. The findings are consistent with financial intermediation frictions due to lower collateral value of corporate intangible assets. Additional tests rule out alternative explanations such as higher mortgage demand. We estimate that higher corporate intangible assets conservatively explain 25-40% of the decline in bank commercial lending since the mid-1980s.

Keywords: Corporate intangible assets; Bank lending; Commercial loans; Real estate loans (search for similar items in EconPapers)
JEL-codes: E22 E44 G21 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-knm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Bank Lending in the Knowledge Economy (2021)
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 (2017)
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