Jiménez, GabrielMian, AtifPeydró, José-LuisSaurina, Jesús2019-04-102019-04-102019Jimenez G, Mian A, Peydró JL, Saurina J. The real effects of the bank lending channel. J Monet Econ. 2019 Jun 15;115:162-79. DOI: 10.1016/j.jmoneco.2019.06.0020304-3932http://hdl.handle.net/10230/37077This paper studies credit booms exploiting the Spanish matched credit register over 2001–2009. We extend Khwaja and Mian’s (2008) loan-level estimator by incorporating firm-level general equilibrium adjustments. Higher ex-ante bank real-estate exposure increases credit supply to non-real-estate firms, but effects are neutralized by firm-level adjustments for firms with existing banking relationships. However, higher bank real-estate exposure increases risk-taking, by relaxing standards of existing borrowers (cheaper, longer-term and less collateralized credit), and by expanding credit on the extensive margin to first-time borrowers that default substantially more. Results suggest that the mechanism at work is greater liquidity via securitization of real-estate assets.application/pdfengUnder a Creative Commons license https://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/articlehttp://dx.doi.org/10.1016/j.jmoneco.2019.06.002Bank lending channelReal effects of creditCredit supply boomsReal estateSecuritizationinfo:eu-repo/semantics/openAccess