Aizenman, Joshua; Jinjarak, Yothin; Spiegel, Mark M. - 2022
We investigate the implications of extra-normal government spending under COVID-19 for commercial bank lending growth … between 2019Q4 and 2020Q4 in a sample of 3000 banks from 71 countries. We control for pre-pandemic structural factors, bank … government spending was associated with higher commercial bank lending, higher public debt going into the crisis weakened the …