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Four facts about relationship lending: The case of Chile 2012-2019

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  • Miguel Acosta-Henao
  • Sangeeta Pratap
  • Manuel Taboada

Abstract

Using confidential credit-registry data on the universe of loans, we characterize the monthly behavior of relationship lending in Chile between 2012 and 2019. We focus on two dimensions of relationships between firms and banks: their duration, and their concentration. We uncover four stylized facts about relationship lending: their be-havior through time, cyclical properties, properties of credit contracts, and how they affect monetary policy transmission. Our results show that relationship lending plays an important role in the process of credit allocation.

Suggested Citation

  • Miguel Acosta-Henao & Sangeeta Pratap & Manuel Taboada, 2022. "Four facts about relationship lending: The case of Chile 2012-2019," Working Papers Central Bank of Chile 956, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:956
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    References listed on IDEAS

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    Cited by:

    1. Lu, Yao & Zhan, Shuwei & Zhan, Minghua, 2024. "Has FinTech changed the sensitivity of corporate investment to interest rates?—Evidence from China," Research in International Business and Finance, Elsevier, vol. 68(C).
    2. Miguel Acosta-Henao & Sangeeta Pratap & Manuel Taboada, 2023. "Relationship Lending: Characteristics and Real Effects," Working Papers Central Bank of Chile 999, Central Bank of Chile.

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    More about this item

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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