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Specialization in Bank Lending: Evidence from Exporting Firms

Author

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  • DANIEL PARAVISINI
  • VERONICA RAPPOPORT
  • PHILIPP SCHNABL

Abstract

We develop a novel approach for measuring bank specialization using granular data on borrower activities and apply it to Peruvian exporters and their banks. We find that borrowers seek credit from banks that specialize in their export destinations, both when expanding exports and when exporting to new countries. Firms experiencing country‐specific export demand shocks adjust borrowing disproportionately from specialized banks. Specialized bank credit supply shocks affect exports disproportionately to countries of specialization. Our results demonstrate that firm credit demand is bank‐ and activity‐specific, which reduces banking competition and affects the transmission and amplification of shocks through the banking sector.

Suggested Citation

  • Daniel Paravisini & Veronica Rappoport & Philipp Schnabl, 2023. "Specialization in Bank Lending: Evidence from Exporting Firms," Journal of Finance, American Finance Association, vol. 78(4), pages 2049-2085, August.
    • Handle: RePEc:bla:jfinan:v:78:y:2023:i:4:p:2049-2085
    DOI: 10.1111/jofi.13254
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    Cited by:

    1. Alvaro Ferreira Silva & Emanuel Gomes & Ferran Vendrell-Herrero & David W. Lehman, 2026. "Revisiting the Uppsala model from a history-to-theory perspective: New lessons on network positioning from a global electric company," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 57(4), pages 577-596, June.
    2. Olivier De Jonghe & Klaas Mulier & Ilia Samarin, 2025. "Bank Specialization and Zombie Lending," Management Science, INFORMS, vol. 71(2), pages 1260-1286, February.
    3. Milton Harris & Christian C. Opp & Marcus M. Opp, 2025. "Intermediary Capital and the Credit Market," Management Science, INFORMS, vol. 71(1), pages 162-183, January.
    4. Mariassunta Giannetti & YeeJin Jang, 2025. "Who Lends Before Banking Crises? Evidence from the International Syndicated Loan Market," Management Science, INFORMS, vol. 71(3), pages 2289-2310, March.
    5. Wu, Xinhong & Wu, Xinmei, 2025. "How does bank digitalization benefit firm borrowing? Evidence from China," Economic Modelling, Elsevier, vol. 153(C).
    6. Andreasen, Eugenia & Nuguer, Victoria, 2025. "Managing capital inflows in a partially dollarized economy: The role of reserve requirements," Journal of International Money and Finance, Elsevier, vol. 159(C).
    7. Federico, Stefano & Marinelli, Giuseppe & Palazzo, Francesco, 2025. "Export shocks and banks’ domestic credit: Balancing liquidity provision and risk mitigation," Journal of International Economics, Elsevier, vol. 158(C).
    8. Yizhong Wang & Sihui Lin & Jiatong Chen & Ting Wang, 2026. "The Impact of Sci‐Tech Finance on Bank Risk and Performance: Evidence From China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(2), pages 1130-1144, June.
    9. Steven Poelhekke & Razvan Eduard Vlahu & Vadym Volosovych, 2021. "Corporate Acquisitions and Bank Relationships," Tinbergen Institute Discussion Papers 21-082/IV, Tinbergen Institute, revised 19 Sep 2026.
    10. Mr. Damien Capelle & Adriano Fernandes & J.J. Kruger & Peter McAdam, 2026. "Barriers to a European Banking Union," IMF Working Papers 2026/123, International Monetary Fund.
    11. Gil Nogueira & Luísa Farinha & Laura Blattner, 2024. "Not All Shocks Are Created Equal: Assessing Heterogeneity in the Bank Lending Channel," Management Science, INFORMS, vol. 70(10), pages 6942-6965, October.
    12. Christophe Cahn & Anne Duquerroy & William Mullins, 2025. "Unconventional Monetary Policy Transmission and Bank Lending Relationships," Management Science, INFORMS, vol. 71(2), pages 1187-1212, February.

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