Trade shocks, credit reallocation and the role of specialisation : evidence from syndicated lending / Isabella Müller
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Discovery
1727471083
URN
urn:nbn:de:gbv:3:2-124569
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [19. August 2020]
Umfang
1 Online-Ressource (III, 33 Seiten, 2,49 MB) : Diagramm
Ausgabevermerk
Sprache
eng
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Inhaltliche Zusammenfassung
This paper provides evidence that banks cut lending to US borrowers as a consequence of a trade shock. This adverse reaction is stronger for banks with higher ex-ante lending to US industries hit by the trade shock. Importantly, I document large heterogeneity in banks‘ reaction depending on their sectoral specialisation. Banks shield industries in which they are specialised in and at the same time reduce the availability of credit to industries they are not specialised in. The latter is driven by low-capital banks and lending to firms that are themselves hit by the trade shock. Banks‘ adjustments have adverse real effects.
Schriftenreihe
IWH-Diskussionspapiere ; 2020, No. 15 (August 2020) ppn:837399270