During the financial crisis banks faced liquidity shocks, and lending slowed down. The reduction in credit availability … raising funds, and a worsening in the creditworthiness of borrowers. However, banks do not pass on liquidity shocks to … borrowers according to a homogenous pattern: by following a pecking order, they first reduce lending to the marginal segment of …

We examine the effects of the government guarantee schemes for bank bonds adopted in the aftermath of the Lehman … Brothers demise to help banks retain access to wholesale funding. We describe the evolution and the pattern of bond issuance … new market, namely the significant �tiering� of the spreads paid by banks at issuance, finding that they mainly …

undesired effects and distortions. Finally, we briefly review the recent evolution of bank lending to the private sector. We … September 2008, in order to support banks and other financial institutions. We first provide an overview of the programmes … the issuance of government guaranteed bonds by banks, examining their impact on banks� funding and highlighting …

After August 2007 the plumbing system that supplied banks with wholesale funding, the interbank market, failed because … toxic assets obstructed the pipes. Banks were forced to squeeze liquidity in a �lemons market� or to ask for liquidity ï …¿½on tap� from central banks. This paper disentangles the two components of the three-month Euribor-Eonia swap spread, credit …

existing empirical evidence on their effectiveness, focusing on those adopted by the European Central Bank and by the Federal … former, the central bank can use communication to steer interest rates and to restore confidence in the financial markets …

We use Italian data on bank lending to firms to study the transmission of shocks affecting bank balance sheets to the … significantly affect their lending, the deterioration of bank capitalization as proxied by charge-offs and profitability had a … significant impact. Furthermore, our results suggest that bank capital influenced lending indirectly, with higher capital reducing …

shocks. Much less is known about how lending relationships and bank-specific characteristics affect the functioning of the … from Italian banks to non-financial firms suggest that close lending relationships kept firms more insulated from the …A substantial literature has investigated the role of relationship lending in shielding borrowers from idiosyncratic …