Small Seminar: The Tohoku Earthquake and Its Impact on Firms' Financial Constraints 2018 | ADB Institute | 23 July 2018 | TBA, ADBI, Tokyo, Japan
Venue
TBA
TBA, ADBI, Tokyo, Japan
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| Event Date |
Mon Jul 23 HKT (over 6 years ago)
In your timezone (EST): Mon Jul 23 12:00am - Mon Jul 23 12:00am |
| Location |
TBA
ADBI, Tokyo, Japan |
| Region | APAC |
Details
Iichiro Uesugi will examine and compare the collateral and the bank lending channels. He identifies exogenous shocks to firms’ tangible assets and banks’ net worth caused by the massive Tohoku earthquake in 2011. He found that (1) damage to a firm’s tangible assets and to the net worth of its primary banks led to a deterioration in the firm’s credit availability, providing evidence of the existence of both the collateral and the bank lending channels; (2) firms that faced a tighter credit constraint after the earthquake reduced the amount of borrowing outstanding and saw a fall in the level of production and sales activities; (3) in aggregate, the damage caused by the earthquake and transmitted through the collateral and bank lending channels substantially decreased output in the region; and (4) some of the financial support measures such as investment subsidies and earthquake insurance payouts alleviated the negative impact.
Speakers
2018 Speaker:
Iichiro Uesugi
Affiliation: Hitotsubashi University