Large Banks and Small Firm Lending / Vitaly M. Bord, Victoria Ivashina, Ryan D. Taliaferro.

Format:

Book

Author/Creator:

Bord, Vitaly M.

Contributor:

National Bureau of Economic Research.

Ivashina, Victoria.

Taliaferro, Ryan D.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25184.

NBER working paper series no. w25184

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We show that since 2007, there was a large and persistent shift in the composition of lenders to small firms. Large banks impacted by the real estate prices collapse systematically contracted their credit to all small firms throughout the U.S.. However, healthy banks expanded their operations and entered new banking markets. The market share gain of these banks was a standard deviation above the long-run historical market share growth and persists for years following the financial crisis. Despite this offsetting expansion, the net effect of the contraction in credit was negative, with lower aggregate credit and deposits growth, and lower entrepreneurial activity through 2015.

Notes:

Print version record

October 2018.