01916cas a2200277 a 4500 AALejournalIMF018013 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484324899 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Bank Lending in the Knowledge Economy / Giovanni Dell'Ariccia, Dalida Kadyrzhanova, Camelia Minoiu, Lev Ratnovski. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms use less tangible capital and invest more in intangible assets. We show that, as firms shift toward intangible assets that have lower collateral values, banks reallocate their portfolios away from commercial loans toward other assets, primarily residential real estate loans and liquid assets. This effect is more pronounced for large and less well capitalized banks and is robust to controlling for real estate loan demand. Our results suggest that increased firm investment in intangible assets can explain up to 20% of bank portfolio reallocation from commercial to residential lending over the last four decades. Mode of access: Internet Kadyrzhanova, Dalida. Minoiu, Camelia. Ratnovski, Lev. IMF Working Papers; Working Paper ; No. 2017/234 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/234/001.2017.issue-234-en.xml IMF e-Library