Shock absorbers and transmitters: the dual facets of bank specialization

dc.contributor.author Iyer, Rajkamal
dc.contributor.author Michaelides, Alexander
dc.contributor.author Kokas, Sotirios
dc.contributor.author Peydró, José-Luis
dc.date.accessioned 2023-04-28T12:32:11Z
dc.date.available 2023-04-28T12:32:11Z
dc.date.issued 2022-11-25
dc.description.abstract This paper highlights the dual facets of bank specialization. After negative industry-specific shocks, banks specializing in an affected sector act as shock absorbers by increasing their lending to firms in that sector at lower interest rates than non-specialized banks. This lending is to profitable firms, thus not consistent with zombie lending. However, when there are funding constraints, increased lending to the affected sector by specialized banks is accompanied by a simultaneous cut in lending to unrelated sectors, thereby transmitting the shock. These firms compensate by raising funds externally. However, in tight financing conditions, there are negative real effects.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/56620
dc.language.iso engca
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.subject.keyword Bank specializationen
dc.subject.keyword Industry-specific shocksen
dc.subject.keyword Real effectsen
dc.subject.keyword Credit growthen
dc.subject.keyword Financial frictionsen
dc.title Shock absorbers and transmitters: the dual facets of bank specializationca
dc.type info:eu-repo/semantics/workingPaperca

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