We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the … the heart of a new bank liquidity channel. This channel complements the traditional bank lending channel, which focuses on … financial health of lenders. Following a violation banks restrict usage of lines of credit by raising spreads, shortening …

macroprudential policy is represented by a convex dependence of bank capital requirements on the quantity of uncollateralized credit …. In our model, producers are financed by both bank debt and equity, and face a mix of systematic and idiosyncratic …

average of bank lending rates. The results are overall encouraging, though the recursive estimates of the long-run parameters …

, (ii) credit supply and (iii) housing demand shocks on the housing market and the broader economy. We find that … clearcut for housing demand shocks. We also find that credit supply shocks matter more in the euro area. JEL Classification: E …

The rapid increase in credit in an economy is now commonly perceived to be one of the leading indicators of financial … policy response has been to focus on the ratio of private sector credit to GDP for an economy, observing, in particular …-state relationship between private sector credit and GDP in the case of Ireland, a country which, even by international standards …

entering commitments regarding the future path of the policy rate, the liquidity interventions decided in October 2008 and in …

restrictions and the credit spread as a threshold variable using the example of the Czech Republic. We find that while there is no … to differ in low and high credit spread regimes. Responses in the opposite direction (i.e. from the financial sector to … the real economy) are procyclical and similar irrespective of regime. A positive shock to credit and a negative shock to …

capita output growth, the credit cycle, the stock of inward foreign direct investment (FDI) and the current account balance … development of the credit to GDP ratio. JEL Classification: F3, F4, F5 …