Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Small firms and domestic bank dependence in Europe's great recession |
| Organization Unit | |
| Authors |
|
| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
|
| Journal Title | Journal of International Economics |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 0022-1996 |
| Volume | 137 |
| Page Range | 103623 |
| Date | 2022 |
| Abstract Text | After the inception of the euro, the real economy in most member countries remained dependent on credit by domestic banks, which increasingly funded themselves through cross-border interbank funding. We find that this pattern of ‘double-decker’ banking integration exposed domestic banks to sharp declines in cross-border interbank lending during the eurozone crisis. As a result, domestic banks reduced lending, which led to large declines in output in sectors with many small (bank-dependent) firms. We propose a quantitative small open economy model to account for these patterns and conclude that a global banking shock leading to a sudden stop in cross-border interbank lending in the eurozone is required to account for them. |
| Related URLs | |
| Digital Object Identifier | 10.1016/j.jinteco.2022.103623 |
| Other Identification Number | merlin-id:23121 |
| PDF File |
Download from ZORA
|
| Export |
BibTeX
EP3 XML (ZORA)
|
| Keywords | Economics and econometrics, finance, small and medium enterprises, SME access to finance, banking integration, domestic bank dependence, interbank dependence, international transmission, eurozone crisis |
| Additional Information | Earlier published as ECON Working Paper No. 397 |