Working Paper: CEPR ID: DP14459
Authors: Victoria Ivashina; Luc Laeven; Enrique Moral-Benito
Abstract: Using credit-registry data for Spain and Peru, we document that four main types of commercial credit—asset-based loans, cash flow loans, trade finance and leasing—are easily identifiable and represent the bulk of corporate credit. We show that credit growth dynamics and bank lending channels vary across these loan types. Moreover, aggregate credit supply shocks previously identified in the literature appear to be driven by individual loan types. The effects of monetary policy and the effects of the financial crisis propagating through banks’ balance sheets are primarily driven by cash flow loans, whereas asset-based credit appears to be largely insensitive to these types of effects.
Keywords: bank credit; loan types; bank lending channel; credit registry
JEL Codes: E5; G21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| cash flow loans (G29) | credit supply (E51) |
| asset-based loans (G21) | credit supply (E51) |
| credit supply shocks (E51) | cash flow loans (G29) |
| credit supply shocks (E51) | asset-based loans (G21) |
| cash flow loans (G29) | monetary policy effects (E52) |
| asset-based loans (G21) | monetary policy effects (E52) |