“…Second, the economic environment strongly impacts firms' investment opportunities and sales, and thus their propensity to apply for loans, i.e. credit demand (Fazzari, Hubbard, Petersen, Blinder and Poterba, 1988;Panetta, Faeh, Grande, Ho, King, Levy, Signoretti, Taboga and Zaghini, 2009). As such, the influence of both the borrower's domicile and the lender's specialization on bank lending can be either supply-or demand-driven.…”