Working Paper: NBER ID: w27056
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 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 is mostly insensitive to these types of effects.
Keywords: bank lending; credit types; monetary policy; financial crisis
JEL Codes: E0; 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) | propagation of credit supply shocks (E51) |
| asset-based loans (G21) | insensitivity to credit supply shocks (E51) |
| loan type (G51) | credit supply dynamics (E51) |
| aggregate credit supply shocks (E51) | supply shocks in asset-based loans (E44) |
| ignoring loan type (G51) | mismeasurement of credit channel effects (E51) |