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NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Gabriel Jimenez

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December 2010Local Versus Aggregate Lending Channels: The Effects Of Securitization On Corporate Credit Supply In Spain
with Atif R. Mian, José-Luis Peydró, Jesús Saurina: w16595
While banks may change their supply of credit due to bank balance sheet shocks (the local lending channel), firms can react by adjusting their sources of financing in equilibrium (the aggregate lending channel). We formalize a methodology for separately estimating these effects. We estimate the local and aggregate lending channel effects of the banks' ability to securitize real estate assets on non-real estate firms in Spain. We show that equilibrium dynamics nullify the strong local lending channel effect on credit quantity for firms with multiple banking relationships. However, credit terms for these firms become significantly more favorable due to securitization. Securitization also leads to an expansion in credit on the extensive margin towards first-time bank clients, and these borrow...

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

 
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