Credit supply - Identifying balance-sheet channels with loan applications and granted loans

Arbeitspapier

To identify credit availability we analyze the extensive and intensive margins of lending with loan applications and all loans granted in Spain. We find that during the period analyzed both worse economic and tighter monetary conditions reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account for unobserved time-varying firm heterogeneity in loan demand and quality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1179

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Financial Markets and the Macroeconomy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation
• Subject: business cycle ; capital ; credit channel ; credit supply ; financial accelerator ; firm borrowing capacity ; liquidity ; monetary policy ; net worth ; non-financial and financial borrower balance-sheet channels ; Unternehmensfinanzierung ; Kreditmarkt ; Bank ; Unternehmensanleihe ; Liquiditätsbeschränkung ; Spanien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jiménez, Gabriel ; Ongena, Steven ; Peydró, José-Luis ; Saurina, Jesús
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/153613
• Last update: 10.03.2025, 11:43 AM CET