This paper models a financial sector in which there is a feedback between individual bank risk and aggregate funding … premia on that market push up bank risk taking, leading to multiple equilibria. The model identifies shifts among equilibria … as a function of parameter shocks. Measures that reduce individual bank default risk within an equilibrium can actually …

To what extent was the credit contraction during the global financial crisis due to more intense screening and … indicates that the reduction in bank lending during the crisis was at least partly caused by stricter bank screening and …

(acceleration of) procyclical behaviour of banking, which might threat en macroeconomic stability. This article analyses the … move up and down with the business cycle, allowing for accumulation of capital in boom periods. Provisioning for credit … decades, distortion caused by procyclical behaviour of banks has been limited, banking crises excepted. …

This paper contributes to the empirical evidence on the credit channel of monetary policy in the euro area by providing … results indicate that private firms, which appear to be more dependent on bank debt for external funds, are more susceptible …

three transitory shocks comprise a short term interest rate shock, an aggregate demand shock and a money demand shock. The …

-varying parameter analysis. Our results indicate that in the euro area the impact on output of a monetary shock have decreased in time …

econometric methods are applied to assess the impact of expected inflation, real exchange rate, money supply, and domestic credit …