Template-Type: ReDIF-Paper 1.0
Author-Name: Giovanni Ferri 
Author-X-Name-First: Giovanni
Author-X-Name-Last: Ferri
Author-Email: g.ferri@lumsa.it
Author-Workplace-Name: LUMSA University 
Author-Name: Pierluigi Murro 
Author-X-Name-First: Pierluigi 
Author-X-Name-Last: Murro
Author-Email: pmurro@luiss.it
Author-Workplace-Name: LUISS University
Author-Name: Valentina Peruzzi 
Author-X-Name-First: Valentina
Author-X-Name-Last: Peruzzi
Author-Email: valentina.peruzzi@unitn.it 
Author-Workplace-Name: University of Trento
Author-Name: Zeno Rotondi
Author-X-Name-First: Zeno 
Author-X-Name-Last: Rotondi
Author-Email: zeno.rotondi@unicredit.eu
Author-Workplace-Name: UniCredit Bank
Title: Bank lending technologies and credit availability in Europe. What can we learn from the crisis?

Abstract: Using a unique sample of European manufacturing firms, we empirically investigate how bank lending technologies and soft information production affected firms' credit availability during the 2007-2009 financial crisis. Estimation results indicate that transactional lending technologies increased firms' credit rationing, whereas soft information production mitigated asymmetric information problems and improved firms' access to credit. By looking at the combined effect of lending technologies and soft information, we also provide evidence of the hardening of soft information phenomenon. When soft information was incorporated in transactional lending techniques firms' credit rationing significantly reduced. This result is especially strong for small borrowing firms and for companies matching with large financial insitutions.
Length: 45 pages
Creation-Date: 2018-09
Publication-Status: 
File-URL: https://repec.lumsa.it/wp/wpC17.pdf
File-Format: Application/pdf
Number: wpC17
Classification-JEL: G21, D82, G30, O16
Keywords: Lending technologies, Credit rationing, Financial crisis, Soft information
Handle: RePEc:lsa:wpaper:wpC17