Mediating Financial Intermediation

57 Pages Posted: 16 Apr 2021 Last revised: 24 May 2022

See all articles by Aymeric Bellon

Aymeric Bellon

UNC Kenan-Flagler Business School

Louis-Marie Harpedanne de Belleville

Banque de France; Paris School of Economics (PSE)

Noémie Pinardon-Touati

HEC Paris

Date Written: April 8, 2021


This paper studies the resolution of disputes between firms and their lenders through external mediators, who suggest a non-legally binding solution to resolve a disagreement after communicating with all parties. We exploit an administrative database on firms' outcomes matched to the French credit registry and plausible exogenous variation in eligibility to public mediators across counties for identification. Participating in a mediation reduces firms' liquidation by 34.6 percentage points and leads to higher credit, employment and investment. All the effects are driven by firms that borrow from more than one bank, supporting the view that mediators solve coordination problems between lenders.

Keywords: mediation, coordination frictions, asymmetric information

Suggested Citation

Bellon, Aymeric and Harpedanne de Belleville, Louis-Marie and Harpedanne de Belleville, Louis-Marie and Pinardon-Touati, Noémie, Mediating Financial Intermediation (April 8, 2021). Available at SSRN: or

Aymeric Bellon (Contact Author)

UNC Kenan-Flagler Business School ( email )

Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States

Louis-Marie Harpedanne de Belleville

Banque de France ( email )


Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014

Noémie Pinardon-Touati

HEC Paris ( email )

1 rue de la Liberation
Jouy-en-Josas Cedex, 78351

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