Paravisini, Daniel ORCID: 0009-0006-8803-8442, Rappoport, Veronica ORCID: 0009-0007-3665-4304 and Schnabl, Philipp (2023) Specialization in bank lending: evidence from exporting firms. Journal of Finance, 78 (4). 2049 - 2085. ISSN 0022-1082
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Abstract
We develop a novel approach for measuring bank specialization using granular data on borrower activities and apply it to Peruvian exporters and their banks. We find that borrowers seek credit from banks that specialize in their export destinations,both when expanding exports and when exporting to new countries. Firms experiencing country-specific export demand shocks adjust borrowing disproportionately from specialized banks. Specialized bank credit supply shocks affect exports disproportionately to countries of specialization. Our results demonstrate that firm credit demand is bank- and activity-specific, which reduces banking competition and affects the transmission and amplification of shocks through the banking sector
Item Type: | Article |
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Official URL: | https://onlinelibrary.wiley.com/journal/15406261 |
Additional Information: | © 2023 the American Finance Association |
Divisions: | Finance Management |
Subjects: | H Social Sciences > HG Finance |
JEL classification: | G - Financial Economics > G2 - Financial Institutions and Services > G20 - General |
Date Deposited: | 21 Jun 2023 13:48 |
Last Modified: | 04 Nov 2024 17:45 |
URI: | http://eprints.lse.ac.uk/id/eprint/119458 |
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