Corporate Loans Composition in Russia During Covid-19 Pandemic: The Role of Borrowers’ Quality and Credit Lines

57 Pages Posted: 9 May 2024

Abstract

We study corporate loan composition in Russia during the pandemic along two dimensions. First, using probability of default to measure borrower quality, we find that the share of loans provided to firms with weaker fundamentals increased during the pandemic. The result does not depend on the share of non-performing loans of banks. Second, we find that the credit line utilisation rate increased during the pandemic irrespective of firms’ ex ante probabilities of default. However, it decreased among firms in the exposed industries. Moreover, financially weaker banks tended to have higher shares of credit lines before and during the pandemic.

Keywords: Corporate credits, credit lines utilisation, credit registry, micro-level data, bank lending, russia

Suggested Citation

Burova, Anna and Kozlovtceva, Irina and Sinyakov, Andrey, Corporate Loans Composition in Russia During Covid-19 Pandemic: The Role of Borrowers’ Quality and Credit Lines. Available at SSRN: https://ssrn.com/abstract=4822595 or http://dx.doi.org/10.2139/ssrn.4822595

Anna Burova

Bank of Russia

12 Neglinnaya Street
Moscow, 107016
Russia

Irina Kozlovtceva (Contact Author)

Bank of Russia ( email )

12 Neglinnaya Street
Moscow, 107016
Russia

Andrey Sinyakov

Bank of Russia ( email )

12 Neglinnaya Street
Moscow, 107016
Russia

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