Abstract

http://ssrn.com/abstract=1674828
 
 

References (72)



 
 

Citations (1)



 
 

Footnotes (16)



 


 



Local versus Aggregate Lending Channels: The Effects of Securitization on Corporate Credit Supply


Gabriel Jiminez


Bank of Spain

Atif R. Mian


Princeton University - Department of Economics; Princeton University - Woodrow Wilson School of Public and International Affairs; NBER

Jose-Luis Peydro


Universitat Pompeu Fabra - Faculty of Economic and Business Sciences; Barcelona Graduate School of Economics (Barcelona GSE)

Jesus Saurina Salas


Bank of Spain

August 2011


Abstract:     
While banks may change their credit supply due to bank balance-sheet shocks (the local lending channel), firms can react by adjusting their sources of financing in equilibrium (the aggregate lending channel). We provide a methodology to identify the aggregate (firm-level) effects of the lending channel and estimate the impact of banks’ ability to securitize real-estate assets on credit supply for non real-estate firms in Spain over 2000-2010. We show that firm-level equilibrium dynamics nullify the strong local (bank-level) lending channel of securitization on credit quantity for firms with multiple banking relationships. Credit terms however become softer, but there are no real effects. Securitization implies a credit expansion on the extensive margin towards first-time bank clients, which are more likely to default. Finally, the 2008 securitization collapse reverses the local lending channel.

Number of Pages in PDF File: 50

Keywords: lending channel, securitization, banking crises, Spain

JEL Classification: G21, G01, G17

working papers series





Download This Paper

Date posted: September 11, 2010 ; Last revised: September 5, 2011

Suggested Citation

Jiminez, Gabriel and Mian, Atif R. and Peydro , Jose-Luis and Saurina Salas, Jesus, Local versus Aggregate Lending Channels: The Effects of Securitization on Corporate Credit Supply (August 2011). Available at SSRN: http://ssrn.com/abstract=1674828 or http://dx.doi.org/10.2139/ssrn.1674828

Contact Information

Gabriel Jiminez
Bank of Spain ( email )
Alcala 50
Madrid 28014
Spain
Atif R. Mian (Contact Author)
Princeton University - Department of Economics ( email )
Princeton, NJ 08544-1021
United States
Princeton University - Woodrow Wilson School of Public and International Affairs ( email )
Princeton University
Princeton, NJ 08544-1021
United States
NBER
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jose-Luis Peydro
Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )
Ramon Trias Fargas 25-27
Barcelona, Barcelona 08005
Spain
(+34) 93 542 1756 (Phone)
(+34) 93 542 1746 (Fax)
HOME PAGE: http://https://sites.google.com/site/joseluispeydroswebpage/
Barcelona Graduate School of Economics (Barcelona GSE) ( email )
Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain
HOME PAGE: http://www.barcelonagse.eu/Faculty.php?id=432
Jesus Saurina Salas
Bank of Spain ( email )
Madrid 28014
Spain
Feedback to SSRN


Paper statistics
Abstract Views: 1,578
Downloads: 379
Download Rank: 44,020
References:  72
Citations:  1
Footnotes:  16

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.437 seconds