Template-Type: ReDIF-Paper 1.0
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Fabiana Sabatini
Author-X-Name-First: Fabiana
Author-X-Name-Last: Sabatini
Author-Name: Stefano Schiaffi
Author-X-Name-First: Stefano
Author-X-Name-Last: Schiaffi
Title: Artificial intelligence and relationship lending
Abstract: We study the interaction between banks' adoption of artificial intelligence (AI) in credit scoring and relationship lending. Using a unique dataset on Italian banks' investments in AI for the purpose of integrating their credit scoring techniques, matched with credit register data from one year before and one year after the outbreak of the Covid-19 crisis, we find that AI investments help banks mitigate the typical countercyclical effects of relationship lending on firms' credit supply, as well as on their investment and employment decisions.
Creation-Date: 2025-02
File-URL: https://www.bis.org/publ/work1244.htm
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1244.htm
File-Format: text/html
Number: 1244
Keywords: artificial intelligence, machine learning, credit supply, relationship lending
Classification-JEL: G01, G21, E50
Handle: RePEc:bis:biswps:1244