 International bank lending and corporate debt structureJose Maria Serena Garralda and Serafeim Tsoukas Working Papers from Business School - Economics, University of Glasgow Abstract: Using a cross-country sample of bank-dependent public firms, we study the international spillovers of a change in banking regulation on corporate borrowing. For identification we examine how US firms’ liabilities vis-`a-vis banks, nonbank lenders, and bond markets evolve after an increase in capital requirements implemented by the European Banking Authority (EBA) in 2011. We find that US firms experience a reduction in credit lines but not in term loans from EU banks. In addition, US firms are able to compensate for reductions in credit lines from EU banks by securing liquidity facilities from US nonbank financial institutions without increasing borrowing from US corporate bond markets. These results suggest that diversified domestic loan markets, in which banks and nonbank financial institutions lend to corporations, can help overcome cuts in cross-border bank funding. Keywords: Credit lines; term loans; bank capital requirements; firm-level data; non-bank financial intermediaries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2020_13 Access Statistics for this paper More papers in Working Papers from Business School - Economics, University of Glasgow Contact information at EDIRC. |
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