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Submitted by AM on

"However, this result could be driven by these banks lending to firms with higher risk or a lower demand for credit during the crisis and, therefore, does not provide clear and convincing evidence that transmission took place." If you have firm level data matched with loan data, I believe it would be easy to look into the risk profile of firms and test the 'lending to riskier firms' hypothesis. Furthermore, I would expect that low credit demand would affect all banks in the same way. Lastly, it would be great if you could put a link for the paper in this article.