Borrowers under water! : rare disasters, regional banks, and recovery lending / Michael Koetter, Felix Noth, Oliver Rehbein
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Discovery
1047648482
URN
urn:nbn:de:gbv:3:2-104366
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), January 29, 2019
Umfang
1 Online-Ressource (III, 31 Seiten, 3,96 MB) : Illustrationen
Ausgabevermerk
This draft: January 29, 2019
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
We show that local banks provide corporate recovery lending to firms affected by adverse regional macro shocks. Banks that reside in counties unaffected by the natural disaster that we specify as macro shock increase lending to firms inside affected counties by 3%. Firms domiciled in flooded counties, in turn, increase corporate borrowing by 16% if they are connected to banks in unaffected counties. We find no indication that recovery lending entails excessive risk-taking or rent-seeking. However, within the group of shock-exposed banks, those without access to geographically more diversified interbank markets exhibit more credit risk and less equity capital.
Schriftenreihe
IWH-Diskussionspapiere ; 2016, no. 31 (November 2016) [rev.] ppn:837399270