Template-Type: ReDIF-Paper 1.0
Author-Name: Iñaki Aldasoro
Author-X-Name-First: Iñaki
Author-X-Name-Last: Aldasoro
Author-Name: Sebastian Doerr
Author-X-Name-First: Sebastian
Author-X-Name-Last: Doerr
Author-Name: Haonan Zhou
Author-X-Name-First: Haonan
Author-X-Name-Last: Zhou
Title: Non-bank lending during crises
Abstract: For a large sample of countries this paper shows that non–banks curtail their syndicated lending by significantly more than banks during financial crises in borrower countries. Differences in the value of lending relationships explain most of the gap. Relationships with non–banks are less valuable in general and thereby do not improve borrowers' access to credit during crises. Non–banks are also less likely to form lasting relationships with borrowers. These findings imply that the rise of non–banks could increase the importance of transaction–based lenders and exacerbate the repercussions of financial shocks.
Creation-Date: 2023-02
File-URL: https://www.bis.org/publ/work1074.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1074.htm
File-Format: text/html
Number: 1074
Keywords: non-banks, syndicated loans, financial crises, relationship lending, financial stability
Classification-JEL: F34, G01, G21, G23
Handle: RePEc:bis:biswps:1074