Bank Funding, Securitization, and Loan Terms: Evidence from Foreign Currency Lending
Journal
Journal of Money, Credit and Banking
ISSN
0022-2879
ISSN-Digital
1538-4616
Type
journal article
Date Issued
2014-10-01
Author(s)
Abstract
We examine how bank funding structure and securitization activities affect the currency denomination of business loans. We analyze a unique data set that includes information on the requested and granted loan currency for 99,490 loans granted to 57,464 firms by a Bulgarian bank. Our findings document that foreign currency lending is at least partially driven by bank eagerness to match the currency structure of assets with that of liabilities. Our results also show that loan currency, as well as loan amount and maturity, are adjusted to make loans eligible for securitization.
Language
English
Keywords
foreign currency debt
bank funding
securitization
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell
Publisher place
Oxford
Volume
46
Number
7
Start page
1501
End page
1534
Pages
34
Subject(s)
Eprints ID
236106
File(s)![Thumbnail Image]()
open.access
Name
jmcb12147_bank_funding.pdf
Size
379.73 KB
Format
Adobe PDF
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