Bank liquidity provision across the firm size distribution

• 成果类型: Article
• 署名作者: Chodorow-Reich, Gabrie; Darmouni, Olivier; Luck, Stephan; Plosser, Matthew
• 署名单位: Harvard University; Columbia University; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.06.035
• 发表日期: 2022
• 页码: 908-932
• 关键词: Bank liquidity; firm size; COVID recession; PPP

摘要

We use supervisory loan-level data to document that small firms (SMEs) obtain shorter maturity credit lines than large firms, post more collateral, have higher utilization rates, and pay higher spreads. We rationalize these facts as the equilibrium outcome of a trade -off between lender commitment and discretion. Using the COVID recession, we test the prediction that SMEs are subject to greater lender discretion. Consistent with this hypothe-sis, SMEs did not draw down whereas large firms did, even in response to similar demand shocks. PPP recipients reduced non-PPP loan balances, indicating the program bolstered their liquidity and alleviated the shortfall. (c) 2021 Elsevier B.V. All rights reserved.