• Corpus ID: 15661643

Credit Crunch, Flight to Quality and Evergreening: An Analysis of Bank-Firm Relationships After Lehman

@inproceedings{Albertazzi2010CreditCF,
  title={Credit Crunch, Flight to Quality and Evergreening: An Analysis of Bank-Firm Relationships After Lehman},
  author={Ugo Albertazzi},
  year={2010}
}
This paper analyzes the e¤ects of the …nancial crisis on credit supply by using highly detailed data on bank-…rm relationships in Italy after Lehman’s collapse. We control for …rms’unobservable characteristics, such as credit demand and borrower risk, by exploiting multiple lending. We …nd evidence of a contraction of credit supply, associated with low bank capitalization and scarce liquidity. The ability of borrowers to compensate through substitution across banks appears to have been limited… 

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