Detalle Publicación

ARTÍCULO
Bank capital requirements, loan guarantees and firm performance
Autores: Mayordomo, S.; Moreno Ibáñez, Antonio; Ongena, S. (Autor de correspondencia); Rodriguez Moreno, M.
Título de la revista: JOURNAL OF FINANCIAL INTERMEDIATION
ISSN: 1042-9573
Volumen: 45
Número: 100825
Fecha de publicación: 2021
Lugar: WOS
Resumen:
This paper studies the effects of the bank capital requirements imposed by the European authorities in October 2011 on loan collateral and personal guarantees usage to enhance capital ratios. We use detailed information on the loan contracts granted by a representative Spanish bank and several subsidiaries to nonfinancial corporations around that date. We document that personal guarantees usage increases more than that of collateral, especially at subsidiaries with lower capital ratios. However, although the former type of guarantees demonstrably disciplined firms in their risk-taking before 2011, their subsequent overuse may have blunted their impact and may have even undermined firm performance and investment.