Loan Types and the Bank Lending Channel

44 Pages Posted: 19 Mar 2020 Last revised: 17 Apr 2020

See all articles by Victoria Ivashina

Victoria Ivashina

Harvard University; National Bureau of Economic Research (NBER)

Luc Laeven

European Central Bank (ECB); Centre for Economic Policy Research (CEPR)

Enrique Moral-Benito

Banco de España

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Date Written: February 17, 2020

Abstract

Using credit-registry data for Spain and Peru, we document that four main types of commercial credit — asset-based loans, cash flow loans, trade finance and leasing — are easily identifiable and represent the bulk of corporate credit. We show that credit growth dynamics and bank lending channels vary across these loan types. Moreover, aggregate credit supply shocks previously identified in the literature appear to be driven by individual loan types. The effects of monetary policy and the effects of the financial crisis propagating through banks’ balance sheets are primarily driven by cash flow loans, whereas asset-based credit appears to be largely insensitive to these types of effects.

Keywords: Bank credit, Loan types, Bank lending channel, Credit registry

JEL Classification: E5, G21

Suggested Citation

Ivashina, Victoria and Laeven, Luc A. and Moral-Benito, Enrique, Loan Types and the Bank Lending Channel (February 17, 2020). Available at SSRN: https://ssrn.com/abstract=3543557 or http://dx.doi.org/10.2139/ssrn.3543557

Victoria Ivashina (Contact Author)

Harvard University ( email )

Harvard Business School
Baker Library 233
Boston, MA 02163
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Luc A. Laeven

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Enrique Moral-Benito

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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