Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216805 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Monetary Economics [ISSN:] 0304-3932 [Volume:] 115 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2020 [Pages:] 162-179
Publisher: 
Elsevier, Amsterdam
Abstract: 
We study bank credit booms, exploiting the Spanish matched credit register over 2001-2009. We extend Khwaja and Mian (2008)’s loan-level estimator by incorporating firm-level general equilibrium adjustments. Higher ex-ante bank real-estate exposure increases credit supply to non-real-estate firms, but effects are neutralized by firm-level adjustments for firms with existing banking relationships. However, higher bank real-estate exposure increases risk-taking, by relaxing standards of existing borrowers (cheaper, longer-term and less collateralized credit), and by expanding credit on the extensive margin to first-time borrowers that default substantially more. Results suggest that the mechanism at work is greater liquidity via securitization of real-estate assets
Subjects: 
bank lending channel
real effects of credit
credit supply booms
real estate
securitization
JEL: 
E32
E44
G01
G21
G28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version
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