Natural disasters and economic growth: The role of banking market structure |
| |
Affiliation: | 1. Department of Management, University of Bologna, Via Capo di Lucca 34, 40126 Bologna, Italy;2. Department of Finance, University of Birmingham, University House, Birmingham B15 2TY, United Kingdom;3. Department of Finance and Accounting, University of Exeter, Streatham Court, Rennes Drive, Exeter EX4 4PU, United Kingdom |
| |
Abstract: | Following a natural disaster, the rate of economic growth recovers faster in less competitive banking markets. A 10% reduction in competition increases the rate of economic growth by 0.3%. In less competitive markets, banks respond to a disaster by increasing the supply of real estate credit by refinancing mortgage loans, but do not lend more to businesses or consumers. Instead, government agencies provide disaster loans to affected businesses and households. Smaller, profitable and well-capitalized institutions that rely more on traditional retail banking originate most mortgage credit. |
| |
Keywords: | Disasters Economic growth Banks |
本文献已被 ScienceDirect 等数据库收录! |
|