1 option
Bank Liquidity Provision Across the Firm Size Distribution / Gabriel Chodorow-Reich, Olivier Darmouni, Stephan Luck, Matthew C. Plosser.
- Format:
- Book
- Author/Creator:
- Chodorow-Reich, Gabriel.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w27945.
- NBER working paper series no. w27945
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- We use supervisory loan-level data to document that small firms (SMEs) obtain shorter maturity credit lines than large firms; have less active maturity management; post more collateral; have higher utilization rates; and pay higher spreads. We rationalize these facts as the equilibrium outcome of a trade-off between lender commitment and discretion. Using the COVID recession, we test the prediction that SMEs are subject to greater lender discretion by examining credit line utilization. We show that SMEs do not drawdown in contrast to large firms despite SME demand, but that PPP loans helped alleviate the shortfall.
- Notes:
- Print version record
- October 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.