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Loan Types and the Bank Lending Channel

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  • Laeven, Luc
  • Ivashina, Victoria
  • Moral-Benito, Enrique

Abstract

Using credit-registry data for Spain and Peru, we document that four main types of commercial credit—asset-based loans, cash flow loans, trade finance and leasing—are easily identifiable and represent the bulk of corporate credit. We show that credit growth dynamics and bank lending channels vary across these loan types. Moreover, aggregate credit supply shocks previously identified in the literature appear to be driven by individual loan types. The effects of monetary policy and the effects of the financial crisis propagating through banks’ balance sheets are primarily driven by cash flow loans, whereas asset-based credit appears to be largely insensitive to these types of effects.

Suggested Citation

  • Laeven, Luc & Ivashina, Victoria & Moral-Benito, Enrique, 2020. "Loan Types and the Bank Lending Channel," CEPR Discussion Papers 14459, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:14459
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    Cited by:

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    3. Toni Beutler & Matthias Gubler & Simona Hauri & Sylvia Kaufmann, 2020. "Bank lending in Switzerland: Capturing cross-sectional heterogeneity and asymmetry over time," Working Papers 20.04, Swiss National Bank, Study Center Gerzensee.
    4. Nicola Viegi & Tumisang Loate, 2021. "The transmission of monetary policy via the banks’ balance sheet – does bank size matter?," Working Papers 849, Economic Research Southern Africa.
    5. McCann, Fergal & McGeever, Niall & Peia, Oana, 2023. "Do non-bank lenders mitigate credit supply shocks? Evidence from a major bank exit," Research Technical Papers 9/RT/23, Central Bank of Ireland.
    6. Gutierrez, Bryan & Ivashina, Victoria & Salomao, Juliana, 2023. "Why is dollar debt Cheaper? Evidence from Peru," Journal of Financial Economics, Elsevier, vol. 148(3), pages 245-272.
    7. Pijoan-Mas, Josep & di Giovanni, Julian & García-Santana, Manuel & Moral-Benito, Enrique, 2022. "Government Procurement and Access to Credit: Firm Dynamics and Aggregate Implications," CEPR Discussion Papers 17023, C.E.P.R. Discussion Papers.
    8. Cusato, Antonio & Castillo, José Luis & IDB Invest, 2023. "Access to Credit and the Expansion of Broadband Internet in Peru," IDB Publications (Working Papers) 12922, Inter-American Development Bank.
    9. Deimantė Teresienė & Greta Keliuotytė-Staniulėnienė & Rasa Kanapickienė, 2021. "Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(5), pages 1-34, March.
    10. Amir Kermani & Yueran Ma, 2020. "Two Tales of Debt," NBER Working Papers 27641, National Bureau of Economic Research, Inc.
    11. Benmelech, Efraim & Kumar, Nitish & Rajan, Raghuram, 2022. "The secured credit premium and the issuance of secured debt," Journal of Financial Economics, Elsevier, vol. 146(1), pages 143-171.
    12. Youngjin Yun & Byoungsoo Cho, 2021. "Is the Monetary Policy Effect Different for Bank Lending to Households and Firms?," GRU Working Paper Series GRU_2021_001, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    13. Andreas Joseph & Christiane Kneer & Neeltje van Horen, 2021. "All You Need Is Cash: Corporate Cash Holdings and Investment after the Global Financial Crisis," CESifo Working Paper Series 9053, CESifo.
    14. Yun, Youngjin & Cho, Byoungsoo, 2022. "Does monetary policy affect bank lending to households and firms differently?," Economic Modelling, Elsevier, vol. 109(C).
    15. Ghosh, Saibal, 2023. "Does climate legislation matter for bank lending? Evidence from MENA countries," Ecological Economics, Elsevier, vol. 212(C).
    16. Chodorow-Reich, Gabriel & Darmouni, Olivier & Luck, Stephan & Plosser, Matthew, 2022. "Bank liquidity provision across the firm size distribution," Journal of Financial Economics, Elsevier, vol. 144(3), pages 908-932.
    17. Manasa Gopal & Philipp Schnabl, 2022. "The Rise of Finance Companies and FinTech Lenders in Small Business Lending," Review of Financial Studies, Society for Financial Studies, vol. 35(11), pages 4859-4901.
    18. Bożena Frączek, 2020. "A System to Support the Transparency of Consumer Credit Offers," JRFM, MDPI, vol. 13(12), pages 1-13, December.
    19. Carmen Elena Anton & Alexandra Zamfirache & Ruxandra-Gabriela Albu & Titus Suciu & Sergiu Mihai Sofian & Oana-Andreea Ghiță-Pîrnuță, 2024. "Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability," Sustainability, MDPI, vol. 16(2), pages 1-29, January.
    20. Moritz Schularick, 2021. "Corporate indebtedness and macroeconomic stabilisation from a long-term perspective," ECONtribute Policy Brief Series 024, University of Bonn and University of Cologne, Germany.
    21. Nicholas Garvin & David W Hughes & José-Luis Peydró, 2021. "The Role of Collateral in Borrowing," RBA Research Discussion Papers rdp2021-01, Reserve Bank of Australia.

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    More about this item

    Keywords

    Bank credit; Loan types; Bank lending channel; Credit registry;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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