TY - GEN
AU - Huneeus, Federico
AU - Kaboski, Joseph P.
AU - Larrain, Mauricio
AU - Schmukler, Sergio L.
AU - Vera, Mario
TI - The Distribution of Crisis Credit Effects on Firm Indebtedness and Aggregate Risk
PB - The World Bank
KW - Finanzkrise
KW - Coronavirus
KW - Kreditrisiko
KW - Kreditsicherung
KW - Wirkungsanalyse
KW - Chile
KW - Administrative and Civil Service Reform
KW - Credit Program
KW - De Facto Governments
KW - Democratic Government
KW - Employment Program
KW - Finance and Financial Sector Development
KW - Financial Crisis Management and Restructuring
KW - Financial Regulation and Supervision
KW - Governance
KW - Government
KW - Guaranteed Loan
KW - Labor Markets
KW - Liquidity Support To Bank
KW - Public Credit
KW - Research Group
KW - Return To Capital
KW - Risk-Sharing Arrangement
KW - ROC
KW - Social Protections and Labor
KW - Arbeitspapier
KW - Graue Literatur
PY - 2022
N2 - This paper studies the distribution of credit during crisis times and its impact on firm indebtedness and macroeconomic risk. Whereas policies can help firms in need of financing, they can lead to adverse selection from riskier firms and higher default risk. The paper analyzes a large-scale program of public credit guarantees in Chile during the COVID-19 pandemic using unique transaction-level data on the demand and supply of credit, matched with administrative tax data, for the universe of banks and firms. Credit demand channels loans toward riskier firms, distributing 4.6 percent of gross domestic product and increasing firm leverage. Despite increased lending to riskier firms, macroeconomic risks remain small. Several factors mitigate aggregate risk: the small weight of riskier firms, the exclusion of the riskiest firms, bank screening, contained expected defaults, and the government absorption of tail risk. The empirical findings are confirmed with a model of heterogeneous firms and endogenous default
CY - Washington, D.C
UR - http://slubdd.de/katalog?TN_libero_mab2
ER -
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