Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229093
Authors: 
Behn, Markus
Schramm, Alexander
Year of Publication: 
2020
Series/Report no.: 
ECB Working Paper No. 2479
Abstract: 
This paper uses granular data on syndicated loans to analyse the impact of international reforms for Global Systemically Important Banks (G-SIBs) on bank lending behaviour. Using a difference-in-differences estimation strategy, we find no effect of the reforms on overall credit supply, while at the same time documenting a substantial decline in borrower- and loan-specific risk factors for the affected banks. Moreover, we detect a significant decline in the pricing gap between interest rates charged by G-SIBs and other banks, which we interpret as indirect evidence for a reduction in funding cost subsidies. Overall, our results suggest that the G-SIB reforms have helped to mitigate moral hazard problems associated with systemically important banks, while the consequences for the real economy have been limited.
Subjects: 
bank regulation
bank lending
systemically important banks
JEL: 
G20
G21
G28
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4396-3
Document Type: 
Working Paper

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