Dilatoriness of the Banking Enterprise Debt in Spain, 1992-2003 (Morosidad De La Deuda Empresarial Bancaria En EspañA, 1992-2003)

54 Pages Posted: 3 Oct 2006

See all articles by Sonia Ruano

Sonia Ruano

Banco de España

Vicente Salas-Fumás

University of Zaragoza - Department of Business Administration and Organization

Date Written: September 21, 2006

Abstract

This paper analyses the determinants of the default ratio associated to banking debt in Spanish non financial firms over the period 1992-2003. It studies the factors influencing firms' entering and exit processes in and out from the default status. Additionally, it explores the factors explaining the relative amount of non performing banking debt in defaulted firms. The database combines firm-level data for non-financial companies drawn from two sources: SABI-INFORMA and Credit Register of Banco de Espana. The methodological approach is an application of Heckman's selection model. Results indicate that the decreasing trend in the evolution of the aggregate default ratio over the studied period is mainly attributable to the moderation in the level of the default ratios in those firms in which the default status is persistent over time. The contribution to the evolution of the aggregate default ratio of firms' turnover in a out from the default status has been fairly stable over time.

Note: Downloadable document is in Spanish.

Keywords: default of bank debt, non financial firms, Heckman's selection model, financial stability, financial distress

JEL Classification: C24, G21, G28, G32

Suggested Citation

Ruano, Sonia and Salas-Fumás, Vicente, Dilatoriness of the Banking Enterprise Debt in Spain, 1992-2003 (Morosidad De La Deuda Empresarial Bancaria En EspañA, 1992-2003) (September 21, 2006). Banco de Espana Research Paper No. WP-0622, Available at SSRN: https://ssrn.com/abstract=931867 or http://dx.doi.org/10.2139/ssrn.931867

Sonia Ruano (Contact Author)

Banco de España ( email )

Madrid 28014
Spain

Vicente Salas-Fumás

University of Zaragoza - Department of Business Administration and Organization ( email )

Dr. Cerrada 1
5005 Zaragoza
Spain
+34 976 761803 (Phone)

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