Access to Credit in a Market Downturn
Casu, B. ORCID: 0000-0003-3586-328X, Chiaramonte, L., Croci, E. (2022). Access to Credit in a Market Downturn. Journal of Financial Services Research, 66(2), pp. 143-169. doi: 10.1007/s10693-022-00388-x
Abstract
Using a unique proprietary dataset from a large European commercial bank containing granular loan-level information on credit lines to mid-corporate firms, we investigate the bank’s decisions to allow firms to retain existing credit at a time of acute financial instability. Our results highlight the importance of bank-firm relationships during crisis times. Existing borrowers who actively used their credit lines were not rationed, unless they posed an increased credit risk. We do not find evidence of evergreening practices.
Publication Type: | Article |
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Publisher Keywords: | credit lines; credit risk; sovereign debt crisis; credit rationing |
Subjects: | H Social Sciences > HG Finance |
Departments: | Bayes Business School > Finance |
SWORD Depositor: |
Available under License Creative Commons Attribution.
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