Foreign bank lending: Evidence from the global financial crisis

• 成果类型: Article; Proceedings Paper
• 署名作者: Albertazzi, Ugo; Bottero, Margherita
• 署名单位: European Central Bank; Bank of Italy
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2014.01.002
• 发表日期: 2014
• 页码: S22-S35
• 关键词: International bank lending channel; Credit crunch; Bank balance sheet channel; Relationship lending; Functional distance

摘要

We exploit highly disaggregated bank-firm data to investigate the dynamics of foreign vs domestic credit supply in Italy around the period of the Lehman collapse, which brought a sudden and unexpected deterioration of economic conditions and a sharp increase in credit risk. Taking advantage of the presence of multiple lending relationships to control for credit demand and risk at the individual-firm level, we show that foreign lenders restricted credit supply (to the same firm) more sharply than their domestic counterparts. A number of exercises testing alternative explanations for this result suggest that such more intense restriction also reflects the (functional) distance between a foreign bank's headquarter and the Italian credit market. (C) 2014 Elsevier B.V. All rights reserved.