On-site inspecting zombie lending

Diana Bonfim; Geraldo Cerqueiro; Hans Degryse; Steven R. G. Ongena

doi:10.2139/ssrn.3530574

On-site inspecting zombie lending

Diana Bonfim
, Geraldo Cerqueiro
, Hans Degryse
, Steven R. G. Ongena

Resultado de pesquisa: ???researchoutput.researchoutputtypes.workingpaper.preprint???

31 Transferências (Pure)

Resumo

In spite of growing regulatory pressure in most developed economies, “zombie lending” remains a widespread practice by banks. In this paper we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses.

Idioma original	English
Número de páginas	67
DOIs	https://doi.org/10.2139/ssrn.3530574
Estado da publicação	Publicado - 27 fev. 2020

Série de publicação

Nome	Swiss Finance Institute Research Paper
N.º	20-16

ODS da ONU

Este resultado contribui para o(s) seguinte(s) Objetivo(s) de Desenvolvimento Sustentável

ODS 10 Desigualdades reduzidas

Acesso ao documento

10.2139/ssrn.3530574Licença: Unspecified

47733996Final published version, 729 KBLicença: Unspecified

http://hdl.handle.net/10400.14/38269Licença: Unspecified

CUBE: Católica Lisbon Research Unit in Business and Economics
Machado, F. (PI), Aranda, A. M. (Investigador), Costa, A. I. D. A. (Investigador), Martins, A. P. (Investigador), Bernard, A. (Investigador), Fidalgo, A. (Investigador), Reis, C. (Investigador), Abecassis-Moedas, C. (Investigador), Santos, C. (Investigador), Tran, D. (Investigador), Fernandes, D. (Investigador), Bonfim, D. (Investigador), Schliephake, E. (Investigador), Kalogirou, F. (Investigador), Reis, F. (Investigador), Santos, F. (Investigador), Machado, F. (Investigador), Sguera, F. (Investigador), Cerqueiro, G. (Investigador), Reis, H. (Investigador), Barreto, I. (Investigador), Silva, J. (Investigador), Salvado, J. C. (Investigador), Neves, J. C. D. (Investigador), Gijsbrechts, J. (Investigador), Stahl, J. (Investigador), Guedes, J. C. (Investigador), Faias, J. (Investigador), Wagner, L. (Investigador), Correia, I. (Investigador), Saldanha, M. F. (Investigador), Fontes, J. C. (Investigador), Modesto, L. (Investigador), Meira, M. (Investigador), Matos, M. G. D. (Investigador), Gouveia, M. (Investigador), Kozeniauskas, N. (Investigador), Bertani, N. (Investigador), Couzoff, P. (Investigador), Barroso, P. (Investigador), Encarnação, P. (Investigador), Raposo, P. (Investigador), Teles, P. (Investigador), Bastos, W. (Investigador), Bohnsack, R. (Investigador), Vale, R. C. D. (Investigador), Ferreira, R. (Investigador), Lloyd-Braga, T. (Investigador), Ramus, T. (Investigador), Colaço, V. H. (Investigador), Cavicchini, A. (Investigador), Parada, P. (Investigador), Pieters, R. (Investigador), Pinto, F. S. (Investigador), Colaço, V. H. (Investigador) & Venter, Z. (Investigador)
1/01/20 → 31/12/25
Projeto
INTAGE: A interação entre agentes no mercado financeiro
Faias, J. (PI), Cerqueiro, G. (Investigador), Guedes, J. C. (Investigador), Bonfim, D. (Investigador), Albuquerque, R. (Investigador), Stahl, J. (Investigador), Camanho, N. (Investigador), Fernandes, D. (Investigador) & Kokkonen, J. (Investigador)
1/09/18 → 31/08/21
Projeto

On-site inspecting zombie lending
Bonfim, D., Cerqueiro, G., Degryse, H. & Ongena, S., mai. 2023, Em: Management Science. 69, 5, p. 2547-2567 21 p.
Resultado de pesquisa › revisão de pares

Acesso aberto
Ficheiro
37 Citações (Scopus)

13 Transferências (Pure)

Citação

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title = "On-site inspecting zombie lending",

abstract = "In spite of growing regulatory pressure in most developed economies, “zombie lending” remains a widespread practice by banks. In this paper we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks{\textquoteright} future lending decisions. We find that an inspected bank becomes 20\% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses.",

keywords = "Zombie lending, Bank supervision",

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Y1 - 2020/2/27

N2 - In spite of growing regulatory pressure in most developed economies, “zombie lending” remains a widespread practice by banks. In this paper we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses.

AB - In spite of growing regulatory pressure in most developed economies, “zombie lending” remains a widespread practice by banks. In this paper we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses.

KW - Zombie lending

KW - Bank supervision

U2 - 10.2139/ssrn.3530574

DO - 10.2139/ssrn.3530574

M3 - Preprint

T3 - Swiss Finance Institute Research Paper

BT - On-site inspecting zombie lending

ER -

On-site inspecting zombie lending

Resumo

Série de publicação

ODS da ONU

Acesso ao documento

Impressão digital

Projetos

CUBE: Católica Lisbon Research Unit in Business and Economics

INTAGE: A interação entre agentes no mercado financeiro

Resultado de pesquisa

On-site inspecting zombie lending

Citação