| Nº Sistema |
000477207 |
| Autor |
 Fernández Lafuerza, Luis |
| Autor |
Galán, Jorge E. |
| Título |
Credit standards and corporate loan default [Recurso electrónico]. Insights for macroprudential policy / Luis Fernández Lafuerza , Jorge E. Galán. |
| Publicado en |
Journal of Banking & Finance [Artículos], v. 181, December 2025, 107566 |
| Nota general |
Artículo de revista |
| Resumen |
We provide compelling evidence of the association between credit standards at loan origination in the corporate sector and default risk. While this relationship has been extensively studied in the mortgage market, it remains underexplored in corporate lending. Using a comprehensive dataset from the Spanish credit register merged with firm-level balance sheet information over a full financial cycle, we show that debt-to-assets and interest coverage ratios at loan origination are significant predictors of future corporate loan defaults. The strength of this association varies across the financial cycle, sectors, firm size and age, and prior banking relationships. Real estate firms and small and medium-sized enterprises exhibit the strongest link between initial credit conditions and future default outcomes. Our findings suggest that limits in corporate credit standards, similar to those widely used in mortgage markets, could enhance firms’ resilience to adverse shocks and complement capital-based instruments within the macroprudential toolkit. However, the effectiveness and potential side effects of such measures depend critically on firm-specific characteristics and sectoral heterogeneity, underscoring the need for a targeted and flexible policy design. [Resumen de autor] [eng] |
| Restricciones |
Acceso electrónico RESTRINGIDO por IP a los usuarios de la Biblioteca del Banco de España |
| Acceso electrónico |
 Acceso al texto completo. |
| Relacionado con |
Documentos de Trabajo / Banco de España ; 2413 |
| Clasificación |
G52-Riesgos y liquidez. |
|
M2-Financiación de la empresa. |
| Materia |
Riesgo de crédito |
|
Economía bancaria |
|
Finanzas corporativas |
| Materia |
España |
