recession. Consistent with the theory, the increase in bank credit in 2020:Q1 and 2020:Q2 came almost entirely from drawdowns by … large firms on pre-committed lines of credit. Differences in demand for liquidity cannot fully explain the differences in … shorter maturity credit lines than large firms; (ii) have less active maturity management and therefore frequently have …

% to generate the same liquidity of a credit fire sale …We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated …

explore the determinants of the choice of using bank loans for short-term liquidity insurance purposes or long-term funding …We show that illiquid assets such as bank loans are used by euro area banks both as central bank collateral for short …-term liquidity insurance purposes and for longer-term funding purposes for issuing covered bonds or asset-backed securities. We then …

. Their results suggest that banks propagate liquidity shocks by reducing credit only to a certain type of borrower …. Importantly, in the financial crisis banks passed the liquidity shock only to public firms. Furthermore, long-term relationships …-crisis experienced a greater credit crunch than other public borrowers. -- Financial institutions …

The interplay between liquidity and credit risks in the interbank market is analyzed. Banks are hit by idiosyncratic … random liquidity shocks. The market may also be hit by a bad news at a future date, implying the insolvency of some … possible contingency, banks currently long of liquidity ask a liquidity premium for lending beyond a short maturity, as a …

This paper proposes a semi-structural approach to identifying excessive household credit developments. Using an … overlapping generations model, a normative trend level for the real household credit stock is derived that depends on four …-aged cohort, and institutional quality. Semi-structural household credit gaps are obtained as deviations of the real household …

2015, we test whether young businesses are more likely to face credit rejections from lenders than their older peers. Our … the issue of sample selection bias potentially affecting our data. Additional tests also reveal that credit constraints … viability of credit and, thus, ensure the growth of young businesses in the Euro area. …

Periods of excessive credit growth can imply emergence of systemic financial stress which may result in financial … crisis causing severe losses in the real economy. The base indicators of overheatedness in the credit markets are the … expansion of the credit-to-GDP ratio and its deviation from its long-term trend, the credit-to-GDP gap. When calculating the …

Bank Investment Survey (EIBIS), to disentangle the effects of borrowers' and lenders' financial weakness on the … satisfaction with the loan contracted. The dataset matches survey data of non-financial firms about their satisfaction with bank … determining firm satisfaction with bank loan financing: non-financial firms with weaker finances and those financed by weaker …

suggests that the current Basel III requirement on liquidity ratio can decrease bank's risking-taking behavior while not …Objective - This paper uses a sample of annual observations of European banks to examine whether the liquidity risk … affects a bank's risk-taking behavior and its future loan growth.Methodology – A sample of European banks (27 member countries …