Do Firm and Bank Level Characteristics Matter for Lending to Firms during the Financial Crisis?

• 발행기관: 한국유통과학회
• 저자명: Mihye Lee
• 간행물 정보: 『산경연구논집(JIDB)』Volume.9 No.5, 37~46쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2018.05.30

영문 초록

Purpose – This paper explores the determinants of bank lending to firms during and after the global financial crisis using firm- and bank-level data to answer the questions what caused the contraction of lending to firms despite the loosening monetary policy during this crisis period. Research design, data, and methodology – We investigate the effects of the monetary policy that followed the global financial crisis on firms borrowing. We use a dynamic panel model to address how firms lending respond to monetary policy. The data are obtained from CRETOP and we consider the manufacturing sector for the analysis to control for unobserved heterogeneity such as industry-specific shocks. Results – The findings from the empirical analysis suggest that both bank- and firm-level characteristics are significant determinants of bank lending. Especially, we find that corporate risk, measured by default risk, is one of the key factors that led to a decline in lending during the crisis. Conclusions – This paper shows that companies borrow more from liquid banks, and high bank capital can also contribute to an increase in a firm’s borrowing from banks. Especially, the results confirm that the default rate measured at the firm level has increased during and after the global financial crisis, which implies that default risk interplays with other firm and bank-level characteristics.

목차

1. Introduction

2. Related Literature

3. Empirical Strategy and Identification

4. Conclusion

키워드

Bank Lending Financial Crisis Monetary Policy Small and Medium Enterprises Default Risk