Empirical Analysis of Corporate Credit Lines

FRB of St. Louis Working Paper No. 2007-14

36 Pages Posted: 27 Feb 2007

See all articles by Jesus Saurina Salas

Jesus Saurina Salas

Banco de España

Gabriel Jiménez

Banco de España

Jose A. Lopez

Federal Reserve Bank of San Francisco

Multiple version iconThere are 3 versions of this paper

Date Written: June 2007

Abstract

Since bank credit lines are a major source of corporate funding and liquidity, we examine the determinants of credit line usage with a database of Spanish corporate credit lines. A line's default status is the primary factor driving its usage, which increases as a firm approaches default. Several lender characteristics suggest an important role for bank monitoring in firms' usage decisions. Credit line usage is found to be inversely related to macroeconomic conditions. Overall, while several factors influence corporate credit line usage, our analysis suggests that default and supply-side variables are the most important.

Keywords: credit lines, firm default, bank lending

JEL Classification: E32, G18, M21

Suggested Citation

Saurina Salas, Jesus and Jimenez, Gabriel and Lopez, Jose Antonio, Empirical Analysis of Corporate Credit Lines (June 2007). Available at SSRN: https://ssrn.com/abstract=965528 or http://dx.doi.org/10.2139/ssrn.965528

Jesus Saurina Salas

Banco de España ( email )

Madrid 28014
Spain

Gabriel Jimenez

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Jose Antonio Lopez (Contact Author)

Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States
415-977-3894 (Phone)
415-974-2168 (Fax)

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