Flooded through the back door : firm-level effects of banks' lending shifts / Oliver Rehbein
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Flooded through the back door
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1013759796
URN
urn:nbn:de:gbv:3:2-89854
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [09. Februar 2018]
Content
1 Online-Ressource (III, 74 Seiten, 4,48 MB) : Diagramme
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Language
eng
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Abstract
I show that natural disasters transmit to firms in non-disaster areas via their banks. This spillover of non-financial shocks through the banking system is stronger for banks with less regulatory capital. Firms connected to a disaster-exposed bank with below median capital reduce their employment by 11% and their fixed assets by 20% compared to firms in the same region without such a bank during the 2013 flooding in Germany. Relationship banking and higher firm capital also mitigate the effects of such negative cross-regional spillovers.
Series
IWH-Diskussionspapiere ; 2018, no. 4 (February 2018) ppn:837399270