Risk Overhang and Loan Portfolio Decisions: Small Business Loan Supply before and during the Financial Crisis

• 成果类型: Article
• 署名作者: Deyoung, Robert; Gron, Anne; Torna, Goekhan; Winton, Andrew
• 署名单位: University of Kansas; State University of New York (SUNY) System; Stony Brook University; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12356
• 发表日期: 2015
• 页码: 2451-2488
• 关键词: CAPITAL STRUCTURE POLICY; MARKET; banking; management

摘要

We estimate a structural model of bank portfolio lending and find that the typical U.S. community bank reduced its business lending during the global financial crisis. The decline in business credit was driven by increased risk overhang effects (consistent with a reduction in the liquidity of assets held on bank balance sheets) and by reduced loan supply elasticities suggestive of credit rationing (consistent with an increase in lender risk aversion). Nevertheless, we identify a group of strategically focused relationship banks that made and maintained higher levels of business loans during the crisis.