Trade credit helped amplify initial Covid-19 shock – BdF paper
French firms’ trade credit positions significantly amplified the impact of the Covid-19 shock to liquidity, a working paper published by the Banque de France finds.
In Corporate liquidity during the Covid-19 crisis: the trade credit channel, Benjamin Bureau, Anne Duquerroy and Frédéric Vinas analyse a BdF dataset. This shows daily information on payment defaults to suppliers in France in 2019 and 2020.
Firms that were net borrowers of trade credit finance found this dependence “a source of
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
UK prepares to regulate crypto sector
Government wants to “capitalise” on benefits of crypto assets while controlling the risks
Text analysis of news spots Chinese financial risk, says paper
Researchers’ model uses machine learning to assess thousands of newspaper articles
Credit constraints have small impact on housing market – paper
RBA economist revisits the effects of down payments on housing prices
Fed moves to ban state banks from holding crypto as principal
Supervisors outline plan for “level playing field” between state and national banks
Iran and Russia to link banking systems to bypass sanctions
Move follows Iran’s signing of free trade “memorandum” with Russia-led EAEU
Ransomware threat on the rise, says Boston Fed IT chief
Automation and AI could boost response times and ease staffing pressures
Fed deals double blow to crypto bank
Wyoming-based Custodia turned down for Fed membership and master account
RBI’s Das calls for more work on financial market development
Development has proceeded at “unprecedented pace” despite series of crises, governor says