Bank balance sheet lending is commonly viewed as the predominant form of lending. We document and study two margins of … document the limits of the shadow bank substitution margin: shadow banks substitute for traditional--deposit-taking--banks in … quantitative consequences of several policies on lending volume and pricing, bank stability, and the distribution of consumer …

We develop a new tractable model of banks' liquidity management and the credit channel of monetary policy. Banks … show how different shocks affect the banking system by altering the trade-off between profiting from lending and incurring … in credit demand …

income gap. Secondly, we show that income gap also predicts the sensitivity of bank lending to interest rates. Quantitatively …, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income gap distribution to … increase lending by about 1.6 percentage points annually relative to a bank at the 25th percentile …

Using confidential regulatory firm-bank-loan level data from the U.S., we document four new facts about the credit … market. First, private SMEs typically utilize all available bank credit which comprises their entire balance sheet debt …, compared to large listed firms who can switch between corporate bonds and drawing from credit lines. Second, SMEs borrow …

The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components … of this mechanism, the balance-sheet channel and the bank lending channel. We argue that forecasting exercises using …

first examine the impact of economic policy uncertainty on aggregate bank credit growth. Then we analyze commercial bank … macroeconomic controls, economic policy uncertainty affected bank level credit growth, and (ii) whether there is variation in the … on bank credit growth. Since this impact varies meaningfully with some bank characteristics - particularly the overall …

We build a model with heterogeneous firms and banks to analyze how policy affects credit allocation and long …-term economic outcomes. When firms are hit by small negative shocks, conventional monetary policy can restore efficient bank lending … "diabolical sorting", whereby low-capitalization banks extend new credit or evergreen existing loans to low-productivity firms. If …

The globalization of banking in the United States is influencing the monetary transmission mechanism both domestically … lending channel within the United States is declining in strength as banking becomes more globalized …

We explore the connection between money, banks, and aggregate credit. We start with a simple real' model without money …, where banks make loans repayable in goods and depositors hold claims on the bank payable on demand in goods. Aggregate … production may be delayed in the economy. If so, we show that the level of ongoing bank lending, and hence of aggregate future …