Risk Overhang and Loan Portfolio Decisions: Small Business Loan Supply before and during the Financial Crisis

被引:90
作者
Deyoung, Robert [1 ]
Gron, Anne [2 ]
Torna, Goekhan [3 ]
Winton, Andrew [4 ]
机构
[1] Univ Kansas, Lawrence, KS 66045 USA
[2] NERA Econ Consulting, London, England
[3] SUNY Stony Brook, Stony Brook, NY USA
[4] Univ Minnesota, Minneapolis, MN 55455 USA
关键词
CAPITAL STRUCTURE POLICY; MARKET; BANKING; MANAGEMENT;
D O I
10.1111/jofi.12356
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We estimate a structural model of bank portfolio lending and find that the typical U.S. community bank reduced its business lending during the global financial crisis. The decline in business credit was driven by increased risk overhang effects (consistent with a reduction in the liquidity of assets held on bank balance sheets) and by reduced loan supply elasticities suggestive of credit rationing (consistent with an increase in lender risk aversion). Nevertheless, we identify a group of strategically focused relationship banks that made and maintained higher levels of business loans during the crisis.
引用
收藏
页码:2451 / 2488
页数:38
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