159th Seminar

主讲人:Yuejuan Yu 地点:Room 409, Jiageng Bld 1
讲座时间:2017-04-20 10:00 - 11:30 发布时间:2017-04-27 11:04

Topic:Lending and Shareholding

 

 

Presenter:   Yuejuan Yu, assistant researcher, Shandong University   

 

 

Time:April 20, 2017(Thursday)10001130

 

 

Venue: Room 409, Jiageng Bld 1

 

 

Abstract:In this paper, we investigate how banks' equity stakes in their  borrowers influence their credit provision to those firms in crises times. We  merge unique data from the German credit register on individual bank-firm credit  exposures with the security deposit statistics that includes banks' equity  holdings. We find that holding equity in a firm determines bank extending credit  to that firm. We also note that this relationship depends on the quality of both  the borrower and the creditor. During good times, banks tend to behave  conservatively and refinance firms in which they hold equity only if the firm is  of good quality. However in crisis, bad banks may ever-green loans to riskier  firms in which they hold equity, possibly due to their residual cash-flow rights  in these firms