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Non-bank lending during crises

Author

Listed:
  • Aldasoro, Inaki
  • Doerr, Sebastian
  • Zhou, Haonan

Abstract

Using data for a large sample of countries, this paper shows that non-banks curtail their syndicated lending by significantly more than banks during borrower-country crises. We provide novel evidence that differences in the value of lending relationships explain most of the gap, even when accounting for lender and borrower characteristics. Unlike for banks, relationships with non-banks - whether measured by duration or frequency - do not improve borrowers' access to credit during crises. The rise of non-banks could therefore lead to a shift from relationship towards transaction lending and exacerbate the repercussions of financial shocks.

Suggested Citation

  • Aldasoro, Inaki & Doerr, Sebastian & Zhou, Haonan, 2024. "Non-bank lending during crises," CEPR Discussion Papers 18989, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18989
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    Cited by:

    1. is not listed on IDEAS
    2. 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.
    3. Elliott, David & Meisenzahl, Ralf R. & Peydró, José-Luis, 2024. "Nonbank lenders as global shock absorbers: Evidence from US monetary policy spillovers," Journal of International Economics, Elsevier, vol. 149(C).
    4. Iñaki Aldasoro & Sebastian Doerr, 2025. "Collateralized lending in private credit," BIS Working Papers 1267, Bank for International Settlements.

    More about this item

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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