Effects of large banks' implicit subsidies on firms' access to credit

• Grant number: 21/13307-3
• Support Opportunities: Scholarships in Brazil - Doctorate
• Start date: September 01, 2022
• End date: December 31, 2023
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Principal Investigator: Rafael Felipe Schiozer
• Grantee: Lucas Nogueira Cabral de Vasconcelos
• Host Institution: Escola de Administração de Empresas de São Paulo (EAESP). Fundação Getúlio Vargas (FGV). São Paulo , SP, Brazil

Abstract

This project aims to test if international banks' resolutions reforms reduce the implicit government subsidy to large financial institutions and if this subsidy is related to the lending supply to firms, especially those companies highly dependent on external finance. To do it, I will use regulatory, accounting, and market data from the G20 jurisdictions and apply a portfolios methodology and an instrumental variable strategy to estimate the causal effect. It is expected that the resolutions will reduce the implicit government guarantees and it will impose a (temporary) decrease on credit supply to firms. (AU)