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  3. 2026
  4. Preliminary Program
  5. Bank Loans and Deposits
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Bank Loans and Deposits

Paper Session

Saturday, Jan. 3, 2026 2:30 PM - 4:30 PM (EST)

Loews Philadelphia Hotel
Hosted By: International Banking, Economics, and Finance Association
  • Chair: Amiyatosh Purnanandam, University of Texas at Austin

Identifying Heterogeneous Supply and Demand Shocks in European Credit Markets

Olivier De Jonghe
,
National Bank of Belgium and European Central Bank
Daniel Lewis
,
University College London

Abstract

We propose a new model in which relationship-specific supply and demand shocks are non-parametrically identified in bipartite data under mild assumptions. For example, separate heterogeneous supply shocks are identified for each firm to which a bank lends. We show that a simple estimator is consistent, derive its limiting distribution, and illustrate its performance in simulations. Using these methods, we identify the heterogeneous distributions of supply and demand shocks for thousands of banks and firms in 11 European countries using the Anacredit dataset. Our estimates characterize how both quantity and price elasticities, and thus supply and demand curves, have changed in those 11 markets in recent years. The shock distributions exhibit within-firm/bank heterogeneity that is not well-explained by conventional fixed effects approaches, which only capture between-firm/bank heterogeneity. This unexplained heterogeneity correlates strongly with economically meaningful relationship-level characteristics and macroeconomic policy measures. These results have important implications for policy, identification assumptions in empirical work, and modeling exercises.

Shedding Light on Bias: Consumer Complaint Disclosure and Racial Equity in Financial Services

Xiang Li
,
Fordham University
Ningzhe Zhou
,
Peking University

Abstract

This study investigates how the public disclosure of consumer complaint narratives in 2015 by the Consumer Financial Protection Bureau affects racial disparities in financial services. Using triple-difference estimation, we show that minority consumers receive better treatment from financial institutions under CFPB supervision after the disclosure. These improvements manifest as higher deposit rates and lower fees in savings markets, and reduced rates for auto loans and credit cards in lending markets. Financial institutions receiving discriminatory complaints face deposit outflows. Our evidence demonstrates the broad impact of service quality disclosure in reducing racial inequalities across both savings and lending markets.

Collateral and Credit

Hans Degryse
,
KU Leuven and CEPR
Olivier De Jonghe
,
National Bank of Belgium and European Central Bank
Luc Laeven
,
European Central Bank and CEPR
Tong Zhao
,
KU Leuven and National Bank of Belgium

Abstract

This paper studies the role of collateral using the euro area corporate credit registry, Ana-
Credit. We document key facts about the importance, distribution, and composition of collateral,
including its presence, types, and values. On average, 53%of bank loans are collateralized,
where real estate and financial assets are the most pledged, while physical movable
assets and other intangible assets are less present. In addition, we show that the aggregate
collateral value pledged to the banking sector is substantial, driven mainly by real estate in
most countries. For the first time, we examine the collateral channel in bank credit using the
observed value of individual collateral. By exploiting within-firm across banks and within bank
across-firm variations for newly issued secured loans, we find that a 1% increase in
collateral value is associated with an approximate 0.7%-0.8% increase in loan commitment
amounts. This collateral value elasticity exhibits substantial time and country heterogeneity.

Discussant(s)
Martina Jasova
,
Columbia University
Charlotte Haendler
,
Southern Methodist University
Dalida Kadyrzhanova
,
Federal Reserve Board
JEL Classifications
  • G2 - Financial Institutions and Services