(AGENPARL) - Roma, 5 Maggio 2023 - (AGENPARL) – ven 05 maggio 2023 Mary Chen, Seung Jung Lee, Daniel Neuhann, Farzad Saidi
Bank deregulation in the form of the repeal of the Glass-Steagall Act facilitated the entry of non-bank lenders into the market for syndicated loans during the pre-2008 credit boom. Institutional investors disproportionately purchase tranches of loans originated by universal banks able to cross-sell loans and underwriting services to firms (as permitted by the repeal). A shock to cross-selling intensity increases loan liquidity at origination and over time. The mechanism is that non-loan exposures ensure monitoring even when banks retain small loan shares. Our findings complement the conventional view that regulatory arbitrage caused the rise of non-bank lenders.
Fonte/Source: https://www.federalreserve.gov/econres/feds/less-bank-regulation-more-non-bank-lending.htm
