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Specialization in bank lending: evidence from exporting firms

Paravisini, Daniel, Rappoport, Veronica and Schnabl, Philipp (2017) Specialization in bank lending: evidence from exporting firms. CEP Discussion Papers (CEPDP1492). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

We develop an empirical approach for identifying specialization in bank lending using granular data on borrower activities. We illustrate the approach by characterizing bank specialization by export market, combining bank, loan, and export data for all firms in Peru. We find that all banks specialize in at least one export market, that specialization affects a firm’s choice of new lenders and how to finance exports, and that credit supply shocks disproportionately affect a firm’s exports to markets where the lender specializes in. Thus, bank market-specific specialization makes credit difficult to substitute, with consequences for competition in credit markets and the transmission of credit shocks to the economy

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2017 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HG Finance
JEL classification: F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade
F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 30 Jan 2018 12:47
Last Modified: 30 Jan 2019 12:38
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/86584

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