Natural disasters and economic growth: The role of banking market structure

• After a disaster, recovery is faster in less competitive banking markets. Banks market power matters for the supply of mortgage credit. do not increase C&I lending, because firms prefer to use SBA disaster loans. Profitable, and well-capitalized banks originate most Following natural rate economic growth recovers A 10% reduction competition increases by 0.3%. In markets, respond increasing real estate credit refinancing loans, but lend more businesses or consumers. Instead, government agencies provide loans affected households. Smaller, profitable institutions that rely on traditional retail