Kazakov, Aleksandr; Koetter, Michael; Titze, Mirko; … - Leibniz-Institut für Wirtschaftsforschung Halle - 2024 - This version: 11.09.2024
government subsidies to firms affect credit markets. We identify credit market responses by considering both, bank lending and … firm borrowing during 1998-2019. We find that subsidies lead to larger lending volumes without crowding out credit to non …-subsidized firms. Banks that are more exposed to subsidized firms exhibit moderately higher credit risk though. Firm subsidies support …