In U.S. data 1981–2012, unsecured firm credit moves procyclically and tends to lead GDP, while secured firm credit is … acyclical; similarly, shocks to unsecured firm credit explain a far larger fraction of output fluctuations than shocks to … secured credit. In this paper we develop a tractable dynamic general equilibrium model in which unsecured firm credit arises …

conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area …We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …

implies that firms do not perfectly hedge against exchange rate risk and that this risk translates into credit risk for banks … ability to repay their debt. Using loan-level data from U.S. banks' regulatory filings, this paper studies the effect of …

This paper uses data from a panel of more than 400 Italian banks for the period 2001-2012 to examine the main …, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly … local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity …

Insufficient capital buffers of banks have been identified as one main cause for the large systemic effects of the … of increased bank capital in terms of reduced loans could be substantial, there are good reasons to believe that the … between the capitalization of the banking sector and bank loans using panel cointegration models. We study the evolution of …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization …

analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … of seven emerging countries, the first without Islamic banks, and the second with a dual banking system including both …

In higher education, pure credit market funding leads to underinvestment due to insufficient risk pooling, while pure … credit markets coexist alongside income-contingent loan funding – might restore efficiency of the educational investment … and, under some condition, leads to higher social welfare than pure credit market funding. If combined with a policy that …

reducing banks' cost of funds. Using panel data on 8.5 million U.S. credit card accounts and 743 credit limit regression … the same credit limit regression discontinuities to estimate banks' marginal propensity to lend (MPL) out of a decrease in … discontinuities, we estimate the marginal propensity to borrow (MPB) for households with different FICO credit scores. We find …

, although default does not trigger exclusion from private credit markets. These findings help shed light on joint default and …