Citation

Discussion Paper Details

Please find the details for DP12156 in an easy to copy and paste format below:

Full Details

Title: Specialization in Bank Lending: Evidence from Exporting Firms

Author(s): Daniel Paravisini, Veronica Rappoport and Philipp Schnabl

Publication Date: July 2017

Keyword(s): Banking, Export Finance and specialization

Programme Area(s): Financial Economics, International Macroeconomics and Finance and International Trade and Regional Economics

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12156

Bibliographic Reference

Paravisini, D, Rappoport, V and Schnabl, P. 2017. 'Specialization in Bank Lending: Evidence from Exporting Firms'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12156