Series: Working Papers. 2020.
Author: Victoria Ivashina, Luc Laeven and Enrique Moral-Benito.
Topics: Credit | Crisis | Quantitative methods | International trade | Corporate finance.
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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 is mostly insensitive to these types of effects.