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Loan types and the bank lending channel

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  • Ivashina, Victoria
  • Laeven, Luc
  • 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 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 is mostly insensitive to these types of effects. JEL Classification: E5, G21

Suggested Citation

  • Ivashina, Victoria & Laeven, Luc & Moral-Benito, Enrique, 2020. "Loan types and the bank lending channel," Working Paper Series 2409, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20202409
    Note: 261593
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    References listed on IDEAS

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    More about this item

    Keywords

    bank credit; bank lending channel; credit registry; loan types;
    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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