Small firms and domestic bank dependence in Europe's great recession

• 成果类型: Article
• 署名作者: Hoffmann, Mathias; Maslov, Egor; Sorensen, Bent E.
• 署名单位: University of Zurich; University of Zurich; University of Houston System; University of Houston; Leibniz Association; Ifo Institut; Australian National University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2022.103623
• 发表日期: 2022
• 关键词: Small and medium enterprises; SME access to finance; Banking integration; Domestic bank dependence; Interbank dependence; international transmission; Eurozone Crisis

摘要

After the inception of the euro, the real economy in most member countries remained dependent on credit by domestic banks, which increasingly funded themselves through cross-border interbank funding. We find that this pattern of 'double-decker' banking integration exposed domestic banks to sharp declines in cross-border interbank lending during the eurozone crisis. As a result, domestic banks reduced lending, which led to large declines in output in sectors with many small (bank-dependent) firms. We propose a quantitative small open economy model to account for these patterns and conclude that a global banking shock leading to a sudden stop in cross-border interbank lending in the eurozone is required to account for them.(c) 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).