Who Lends Before Banking Crises? Evidence from the International Syndicated Loan Market

Author(s):Mariassunta Giannetti and Yeejin Jang Date:January 2021 Abstract: We show that foreign lenders and low market share lenders extend more credit in comparison to other lenders during lending booms leading to banking crises, but not during other credit expansions. Less established lenders also increase the amount of credit they extend to riskier borrowers, without asking[…]