We present a model in which banks and other financial intermediaries face both occasionally binding borrowing …

significant declines and substantial dispersion in European repo rates. However, banks holding these safe assets benefited from … German credit register to show that asset scarcity had real effects: Banks more exposed to asset scarcity increased their …

-financial environment. In 'normal' states where banks do not face problems to retain enough profits to satisfy higher capital requirements … in capital requirements. In 'bad' states where banks are not able to come up with sufficient equity to satisfy capital …, which usually feature a constant lending response of around 1%, our state-dependent impact is an order of magnitude lower in …

-financial environment. In 'normal' states where banks do not face problems to retain enough profits to satisfy higher capital requirements … in capital requirements. In 'bad' states where banks are not able to come up with sufficient equity to satisfy capital …, which usually feature a constant lending response of around 1%, our state-dependent impact is an order of magnitude lower in …

According to current regulation, European banks can apply zero risk weights to sovereign exposures in their balance … distorting banks' asset allocation decisions. Due to the lower regulatory cost of sovereign bonds, banks invest more in those … bonds at the expense of lending to the real sector. To quantify the effect of this distortion, we build a standard RBC model …

highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take …

to bank loans, such as financing via equity, debt securities, trade credit and lending from non-banks. We investigate …We analyse the macroeconomic effects of exogenous contractions in bank lending to non-financial corporations in the … whether these alternative financing sources are complements to or substitutes for bank lending using the joint posterior …