Economics, Econometrics and Finance
5 years ago

Sovereign default in Argentina reshapes banking relationships and corporate credit.

Working paper
Relationship Networks in Banking Around a Sovereign Default and Currency Crisis
Pablo D’Erasmo, Hernán Moscoso Boedo, María Pía Olivero, Máximo Sangiácomo

Paper Summary

Banks in Argentina during the 2001 crisis affected firms they were connected to. Firms with ties to struggling banks faced credit issues. However, profitable firms could switch lenders to lessen the impact. Data supports this theory.

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