全球智库信息集成服务系统(G2TT): DP16658 Zombie Lending and Policy Traps

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16658
	DP16658 Zombie Lending and Policy Traps
	Viral Acharya; Simone Lenzu; Olivier Wang
发表日期	2021-10-21
出版年	2021
语种	英语
摘要	We build a model with heterogeneous firms and banks to analyze how policy can affect the efficiency of credit allocation and long-term economic outcomes. When transitory demand or productivity shocks are small, conventional monetary policy can restore efficient bank lending and production by lowering interest rates. For moderately large shocks, however, conventional policy may hit the effective lower bound, necessitating unconventional policy such as regulatory forbearance towards banks to stabilize the economy. Aggressive unconventional policy runs the risk of introducing zombie lending and a “diabolical sorting”, whereby low-capitalization banks extend new credit or evergreen existing loans to low-productivity firms. In a dynamic setting, policy aimed at avoiding short-term recessions can be trapped into protracted excessive forbearance due to congestion externalities imposed by zombie lending on healthier firms. The resulting economic sclerosis transforms transitory shocks into phases of delayed recovery and potentially permanent output losses. Our model highlights the importance of maintaining a well-capitalized banking system to avoid such policy traps as not raising capital requirements upfront but raising them significantly upon the arrival of shocks can also backfire by encouraging zombie lending.
主题	Financial Economics ; Monetary Economics and Fluctuations
关键词	Bank capital Credit misallocation Evergreening Forbearance Conventional and unconventional monetary policy
URL	https://cepr.org/publications/dp16658
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545597
推荐引用方式 GB/T 7714	Viral Acharya,Simone Lenzu,Olivier Wang. DP16658 Zombie Lending and Policy Traps. 2021.