In the presence of financial frictions, banks' capital position may constrain their ability to provide loans. The … approaches. First, we use microeconomic balance sheet data from Germany and estimate banks' loan supply response to capital … equilibrium elasticity of bank loan supply with respect to bank capital. Although the targeted elasticity is remarkably different …

to health shocks. This finding is consistent with the view that remittances respond to households' demand for financing … emergencies and make them less reliant on debt-financing. …