Aggregate Implications of Credit Relationship Flows: a Tale of Two Margins

77 Pages Posted: 6 May 2021

See all articles by Banque de France RPS Submitter

Banque de France RPS Submitter

affiliation not provided to SSRN

Yasser Boualam

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Clément Mazet-Sonilhac

Banque de France; Collège de France; SciencesPo - Sciences Po - Department of Economics

Date Written: January 2021

Abstract

This paper documents the aggregate properties of credit relationship flows within the commercial
loan market in France from 1998 through 2018. Using detailed bank-firm level data from the French
Credit Register, we show that banks actively and continuously adjust their credit supply along both
intensive and extensive margins. We particularly highlight the importance of gross flows associated
with credit relationships and show that they are (i) volatile and pervasive throughout the cycle, and
(ii) can account for up to 48 percent of the cyclical and 90 percent of the long-run variations in
aggregate bank credit.

Keywords: Credit Flows; Financial Institutions; Relationship Lending; Search and Matching.

JEL Classification: E51; G21; E52; E32

Suggested Citation

RPS Submitter, Banque de France and Boualam, Yasser and Mazet-Sonilhac, Clément, Aggregate Implications of Credit Relationship Flows: a Tale of Two Margins (January 2021). Banque de France Working Paper No. 801, Available at SSRN: https://ssrn.com/abstract=3840196 or http://dx.doi.org/10.2139/ssrn.3840196

Banque de France RPS Submitter

affiliation not provided to SSRN

Yasser Boualam

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

HOME PAGE: http://www.yasserboualam.com

Clément Mazet-Sonilhac (Contact Author)

Banque de France ( email )

Paris
France

Collège de France ( email )

11 Place Marcelin Berthelot
Paris, 75231
France

SciencesPo - Sciences Po - Department of Economics ( email )

28, rue des Saints-Pères
Paris, Paris 75007
France

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