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Specialization in bank lending: evidence from exporting firms

Paravisini, Daniel, Rappoport, Veronica 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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Identification Number: 10.1111/jofi.13254

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
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: 17 Feb 2024 00:18
URI: http://eprints.lse.ac.uk/id/eprint/119458

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