2024/02/01 by Pejman Abedifar, Seyed Javad Kashizadeh, Steven Ongena
Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Insurance and Financial Risk Management #Microfinance and Financial Inclusion
paper · doi:10.1016/j.jcorpfin.2024.102544
openalex publication_date 2024/02/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/23
Using Iran’s unexpected flood in April 2019 as a natural experiment, we show that local branches bridge the time gap between the disaster and governmental aids by immediately increasing their lending for two months following the flood. Analyzing proprietary information on more than 53,000 farmers, we find that farmers with a stronger relationship with their branch - particularly younger and females - are more likely to receive a recovery loan. Our findings underscore that despite recent technological advancements, relationship-based branch banking is still important for agrarian societies during catastrophic events.