Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
For a large sample of countries, this article shows that non-banks curtail their syndicated lending by significantly more than banks during financial crises in borrower countries. Differences in the value of lending relationships explain most of the gap. Relationships with non-banks are less valuable in general and thereby do not improve borrowers’ access to credit during crises. Non-banks are also less likely to form lasting relationships with borrowers. These findings imply that the rise of non-banks could increase the importance of transaction-based lenders and exacerbate the repercussions of financial shocks.