Brown, Martin; Ongena, Steven; Yesin, Pınar Ayşe Yeşin - Schweizerische Nationalbank (SNB) - 2009
We examine the firm- and country-level determinants of the currency denomination of small business loans. We first … model the choice of loan currency in a framework which features a trade-off between lower cost of debt and the risk of firm …-level distress costs, and also examines the impact of information asymmetry between banks and firms. When foreign currency funds come …