Dollars Dollars Everywhere, Nor Any Dime to Lend: Credit Limit Constraints on Financial Sector Absorptive Capacity

• 成果类型: Article
• 署名作者: Khwaja, Asim Ijaz; Mian, Atif; Zia, Bilal
• 署名单位: The World Bank; Harvard University; University of California System; University of California Berkeley
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhq091
• 发表日期: 2010
• 页码: 4281
• 关键词: cash flow sensitivities; INVESTMENT; transmission; liquidity; shocks; FIRMS

摘要

We exploit an unexpected inflow of liquidity in an emerging market to study how capital is intermediated to firms. We find that backward-looking credit limit constraints imposed by banks make it difficult for firms to borrow, despite readily available bank liquidity, healthy aggregate demand, and a sharply falling cost of capital. The resulting aggregate failure to extend and retain capital in the economy suggests that agency costs that force banks to rely on sticky balance-sheet-based credit limits prevent emerging economies from effectively intermediating capital.