Who Pays for Financial Crises? Price and Quantity Rationing of Different Borrowers by Domestic and Foreign Banks
IMF Working Papers, July 10, 2018
Source details
- Canonical URL
- Who Pays for Financial Crises? Price and Quantity Rationing of Different Borrowers by Domestic and Foreign Banks
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Bibliographic details
- Authors: Allen N. Berger, Tanakorn Makaew, Rima A Turk
- Published: July 10, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484358191.001
Key findings
- Financial crises result in both price and quantity rationing of otherwise creditworthy business borrowers.
- Publicly-listed borrowers are rationed more by prices or interest rates.
- Privately-held borrowers are rationed more by the number of loans (quantity rationing).
- The global financial crisis appears to have changed how banks price borrower risk.
- There are important differences in rationing and pricing behaviour between foreign and domestic banks.
- There are important differences in rationing and pricing behaviour between U.S. and non-U.S. loans.
Data and scope
- Dataset covers 50 countries.
- Dataset contains over 18,000 business loans with information on the lender, the borrower, and contract terms.
- Subjects: Bank credit, Banking, Credit ratings, Financial crises, Financial institutions, Foreign banks, Loans, Money.
- Keywords: Bank credit, borrower characteristic, contract term, Credit ratings, Credit Rationing, Financial Crises, Foreign Banks, Global, loan purpose, Loans, private borrower, public borrower, Relationship Lending, WP.