We study the sensitivity of banks' credit supply to small and medium size enterprises (SMEs) in the UK to banks …' financial condition before and during the financial crisis. Employing unique data on the geographical location of all bank … branches in the UK, we connect firms' access to bank credit to the financial condition (i.e., bank health and the use of core …

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 …

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 …

of the U.S. economy before and after the Great Recession. In a DSGE model with endogenous growth, negative demand shocks …

growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit … would bring about. We explore this growth mechanism using a large-scale program to expand the supply of credit to small and … short-run employment growth in the formal sector. However, credit expansions increase average capability among entering …

Union. In this paper we introduce liquidity and credit constraints into the BK model and show how these problems can … credit enforcement is prohibitively costly. The theory helps to explain how the three observed phenomena of output decline … shortage the financial shortage and barter have each an important effect on output growth. …

. Hence, banks build up larger capital buffers which (i) lowers the public losses in case of a systemic crisis and (ii …) restores the banking sector’s lending capacity after the short-term credit crunch induced by tighter regulation. We confirm our …

behavior of LLP. Further, it is generally less pro-cyclical (although not during the recent economic crisis) in the case of …