On-site inspecting zombie lending

Detalhes bibliográficos
Autor(a) principal: Bonfim, Diana
Data de Publicação: 2022
Outros Autores: Cerqueiro, Geraldo, Degryse, Hans, Ongena, Steven
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.14/40951
Resumo: “Zombie lending” remains a widespread practice by banks around the world. 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.
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spelling On-site inspecting zombie lending“Zombie lending” remains a widespread practice by banks around the world. 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.Veritati - Repositório Institucional da Universidade Católica PortuguesaBonfim, DianaCerqueiro, GeraldoDegryse, HansOngena, Steven2023-04-26T08:18:01Z2022-06-072022-06-07T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/40951eng0025-190910.1287/mnsc.2022.445285161316282000827227000001info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-09-06T12:41:55Zoai:repositorio.ucp.pt:10400.14/40951Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-09-06T12:41:55Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv On-site inspecting zombie lending
title On-site inspecting zombie lending
spellingShingle On-site inspecting zombie lending
Bonfim, Diana
title_short On-site inspecting zombie lending
title_full On-site inspecting zombie lending
title_fullStr On-site inspecting zombie lending
title_full_unstemmed On-site inspecting zombie lending
title_sort On-site inspecting zombie lending
author Bonfim, Diana
author_facet Bonfim, Diana
Cerqueiro, Geraldo
Degryse, Hans
Ongena, Steven
author_role author
author2 Cerqueiro, Geraldo
Degryse, Hans
Ongena, Steven
author2_role author
author
author
dc.contributor.none.fl_str_mv Veritati - Repositório Institucional da Universidade Católica Portuguesa
dc.contributor.author.fl_str_mv Bonfim, Diana
Cerqueiro, Geraldo
Degryse, Hans
Ongena, Steven
description “Zombie lending” remains a widespread practice by banks around the world. 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.
publishDate 2022
dc.date.none.fl_str_mv 2022-06-07
2022-06-07T00:00:00Z
2023-04-26T08:18:01Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.14/40951
url http://hdl.handle.net/10400.14/40951
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0025-1909
10.1287/mnsc.2022.4452
85161316282
000827227000001
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv mluisa.alvim@gmail.com
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