|Author Name||SEKINO Masahiro (ISI Software Co., Ltd) /WATANABE Wako (Keio University)
|Creation Date/NO.||October 2014 14-E-063|
|Research Project||Study on Corporate Finance and Firm Dynamics
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Using the data of individual loan contracts extended by the Japan Finance Corporation for Small and Medium Enterprise (JASME), which is one of the predecessor institutions of the Japan Finance Corporation (JFC) that aimed at lending to small and medium enterprises (SMEs), we examine whether the JASME's lending substituted for the reduced lending supply by private banks during the period of the credit crunch. We find that the JASME made larger loans to the firms whose main bank reduced more lending due to losses on their capital.