Since bank credit lines are a major source of corporate funding and liquidity, we examine the determinants of credit … line usage with a database of Spanish corporate credit lines. A line's default status is the primary factor driving its … monitoring in firms' usage decisions. Credit line usage is found to be inversely related to macroeconomic conditions. Overall …

Managing the credit risk inherent to a corporate credit line is similar to that of a term loan, but with one key … default (LGD). However, since a credit line allows the borrowers to draw down the committed funds according to their own needs … corporate lending within Spain over the last 20 years, provides the most comprehensive overview of corporate credit line use and …