Sie sind hier: Startseite Finance Finance Seminar Daniel L. Greenwald - MIT Sloan

Termin: 13.04.2021 Uhrzeit: 15:00 - 16:30

Daniel L. Greenwald - MIT Sloan


Daniel L. Greenwald (MIT Sloan)

April 13, 2021 - 3pm 

Online via Zoom

Personal website:

The Credit Line Channel (with John Krainer and Pascal Paul)

Abstact: Aggregate bank lending to firms expands following a number of adverse macroeconomic shocks, such as the outbreak of COVID-19 or a monetary policy tightening. Using loan-level supervisory data, we show that these dynamics are driven by draws on credit lines by large firms. Banks that experience larger drawdowns restrict term lending more — an externality onto smaller firms. Using a structural model, we show that credit lines are necessary to reproduce the flow of credit toward less constrained firms after adverse shocks. While credit lines increase total credit growth, their redistributive effects exacerbate the fall in investment. 

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Veranstalter: Finance Group