Do banks with low capital extend excessive credit to weak firms, and does this matter for aggregate efficiency? Using a … Eurozone financial crisis: (i) Under-capitalized banks were less likely to cut credit to non-viable firms. (ii) Credit … adverse effects of credit misallocation on the growth rate of healthier firms were negligible, and so were the effects on TFP …

This paper presents a micro data approach to the identification of credit crunches. Using a survey among German firms … which regularly queries the firms' assessment of the current willingness of banks to extend credit we estimate the … probability of a restrictive credit supply policy by time taking into account the creditworthiness of borrowers. Creditworthiness …

This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …

beyond other better-known early warning indicators, such as credit booms. This predictive power, however, only holds in … the short-term popularity benefits of weak credit booms rather than implementing politically costly corrective policies …

conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … credit spreads to monetary policy shocks …

reducing banks' cost of funds. Using panel data on 8.5 million U.S. credit card accounts and 743 credit limit regression … discontinuities, we estimate the marginal propensity to borrow (MPB) for households with different FICO credit scores. We find … substantial heterogeneity, with a $1 increase in credit limits raising total unsecured borrowing after 12 months by 59 cents for …

mechanism of the Eurosystem's credit support policies since the start of the crisis. First, we show that these policies have … indeed been succesful in stimulating the credit flow of banks to the private sector. Second, we find support for the “bank … responded more to the credit support policies of the Eurosystem as a result of more favourable size, retail and liquidity …

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 …