Co-authors: Fabiana Sabatini, Stefano Schiaffi
Affiliation: Bank for International Settlements
Date and time: Wednesday, August 12, 2026 14:30 (Santiago, GMT-04:00)
Location (Hybrid Seminar):

• Sala Constitución at the Central Bank of Chile, Morandé 115, second floor.
• Online meeting

Registration: seminarios@bcentral.cl

Abstract: We study the interaction between banks’ adoption of artificial intelligence (AI) in credit scoring and relationship lending. Using a unique dataset on Italian banks’ investments in AI for the purpose of integrating their credit scoring techniques, matched with credit register data from one year before and one year after the outbreak of the COVID-19 pandemic, we find that AI adoption by banks mitigates the typical countercyclical effects of relationship lending on firms’ credit supply, as well as on their investment and employment decisions.