Religiosity and bank lending: evidence surrounding the pandemic in the USA

IF 2.3 Q2 BUSINESS, FINANCE

Studies in Economics and Finance Pub Date : 2023-02-28 DOI:10.1108/sef-07-2022-0381

Babu G. Baradwaj, Michaël Dewally, Liu Hong, Yingying Shao

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引用次数: 1

Abstract

Purpose The purpose of this study is to investigate the impact of religiosity on banks’ lending behavior during the COVID-19 pandemic in the USA. Design/methodology/approach This study uses the evidence from the issuance of Paycheck Protection Program (PPP) loans to relate local religiosity to banks’ participation in the PPP loan program and to banks’ loan portfolio performance during the pandemic. Findings The results of this study show that banks located in more religious counties have a higher level of lending through the PPP, supporting the ethical and moral concerns cultivated by local religious beliefs. In addition, banks’ lending before the pandemic is more prudential in more religious areas, as reflected in lower losses and higher returns at the onset of the crisis, especially in areas where business activities were most disrupted, supporting the stewardship role encouraged by religiosity. Originality/value Thanks to the structure of the PPP loans programs, the authors are able to disentangle the conflicting effects of morality and prudence on banks’ behavior.

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宗教信仰和银行贷款：围绕美国疫情的证据

目的本研究的目的是调查在COVID-19大流行期间宗教信仰对美国银行贷款行为的影响。设计/方法/方法本研究使用来自发放工资保障计划(PPP)贷款的证据，将地方宗教信仰与银行参与PPP贷款计划以及银行在疫情期间的贷款组合表现联系起来。本研究的结果表明，宗教程度越高的县的银行通过PPP进行贷款的水平越高，这支持了当地宗教信仰培养的伦理和道德问题。此外，在大流行之前，银行在宗教信仰较多的地区的贷款更为审慎，这反映在危机开始时损失较低、回报较高，特别是在商业活动受到最严重干扰的地区，这支持了宗教信仰所鼓励的管理作用。独创性/价值由于PPP贷款项目的结构，作者能够理清道德和审慎对银行行为的冲突影响。

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来源期刊

Studies in Economics and Finance BUSINESS, FINANCE-

CiteScore

4.30

自引率

10.50%

发文量

期刊介绍： Topics addressed in the journal include: ■corporate finance, ■financial markets, ■money and banking, ■international finance and economics, ■investments, ■risk management, ■theory of the firm, ■competition policy, ■corporate governance.