Financial intermediation through financial disintermediation: evidence from the ECB corporate sector purchase program



Publishing details

Social Sciences Research Network

Authors / Editors

Ertan A; Kleymenova A; Tuijn M


Publication Year



We study the spillover effects of financial disintermediation in the corporate sector on the supply of credit to small and medium enterprises (SMEs). We find that direct central-bank lending to large corporations induces banks to increase lending to SMEs by 10 percent and that this effect is stronger for liquidity-constrained banks. SMEs are also more likely to forge new banking relationships and access credit more cheaply. Finally, SMEs seem to use the additional credit for investment and hiring purposes. We verify that these inferences are not due to changing economic fundamentals or selection effects in central-bank financing.


Small businesses; Credit supply; Economic growth; Monetary policy; Real effects

Publication Notes

Fama-Miller Working Paper ; Chicago Booth Research Paper No. 18-06


Social Sciences Research Network