Productive Banks Lend to Productive Firms

Serie

  • Documentos CEDE

Resumen

  • Using a unique dataset combining Colombian firm, bank, and credit registry data from 2006 to 2021, we investigate the relationship between bank productivity and the productivity of firms they lend to. We find a positive correlation that strengthened after 2017. We posit a theoretical model to rationalize this finding: more productive banks optimally choose to lend to more productive firms because they can better afford the fixed costs of accessing higher-quality firm profiles.

fecha de publicación

  • 2025

Líneas de investigación

  • bank productivity
  • firm productivity
  • lending relationships
  • productivity measurement

Issue

  • 21298