Brexit and the contraction of syndicated lending

• 成果类型: Article
• 署名作者: Berg, Tobias; Saunders, Anthony; Schafer, Larissa; Steffen, Sascha
• 署名单位: Frankfurt School Finance & Management; New York University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.03.009
• 发表日期: 2021
• 页码: 66-82
• 关键词: Brexit; syndicated loans; banks; Financial centers

摘要

We document a 24% decline in loan issuances in the UK syndicated loan market after the Brexit vote relative to a set of comparable loan markets. The decline in lending is driven by a pervasive reduction in demand by UK firms. Changes in GDP forecast around the Brexit vote explain about 61% of the decline in lending. We do not find evidence, however, that the United Kingdom loses its attractiveness as a financial center for cross-border lending. Our results point to the resilience of global financial centers in the face of large unexpected shocks. (c) 2021 Elsevier B.V. All rights reserved.