Bank asset transparency and credit supply

• 成果类型: Article
• 署名作者: Balakrishnan, Karthik; Ertan, Aytekin
• 署名单位: University of London; London Business School
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-019-09510-2
• 发表日期: 2019
• 页码: 1359-1391
• 关键词: Financial intermediation; Accounting information; RISK-MANAGEMENT; cost; disclosure; liquidity; institutions; INVESTMENT; POLICY; MODEL

摘要

We employ the European Central Bank's Loan-level Reporting Initiative as a shock to banks' asset disclosures. We find that after the disclosure regulation, treatment banks raise more capital at cheaper rates and increase lending. Using novel survey data on small businesses, we also document that, in regimes with heightened bank disclosures, borrowers receive greater funding, conditional on their demand for credit. Furthermore, companies whose relationship banks provide asset disclosures start to borrow and invest more relative to firms from the same country and industry. Collectively, our inferences suggest that asset disclosures alleviate the capital market frictions that banks face and allow them to supply more credit to the real economy.