Recent regulatory efforts aim at lowering the cyclicality of bank lending because of its potential detrimental effects … on financial stability and the real economy. We investigate the cyclicality of SME lending by local banks with vs … credit demand-side factors. The public mandate is set by local governments and stipulates a deviation from strict profit …

restrictive bank loan supply shock has a strong and persistent negative impact on real GDP and the GDP deflator. This result comes … "spare tire" for the reduction in bank loans. We show that this result can be rationalized by a recently revived view of … banking, which holds that banks increase the nominal purchasing power of the economy when they create additional deposits in …

to bank loans, such as financing via equity, debt securities, trade credit and lending from non-banks. We investigate … loans to be substitutes for bank loans with negative responses to a positive loan supply shock while trade credit is a …. Quantitatively, the developments in bank loans and trade credit dominate the response of the overall sum of the external financing …

This paper uses matched bank-firm-level data and the 2014 depreciation of the euro to show that exchange rate … depreciations lead to increased bank loan supply of large banks with significant net foreign asset exposure. This increase in … lending can be explained by a shift in credit towards both export-intensive firms and small banks without foreign asset …

-based capital regulation significantly affected low capitalized banks. The impact depends on a bank's credit risk model, i …This paper examines how Basel III capital reforms affected bank lending in Ger- many. We focus on the increase of ….e. whether a bank applies the standardized approach (SA) or an internal ratings-based approach (IRBA) to determine risk weights …

The US credit boom has been identified as one of the causes of the global financial crisis and the resulting debt … overhang is seen as the primary reason for the weak economic recovery. Most of the existing literature links the credit boom to … the emergence of the shadow banking system. This paper shows that the largest part of the shadow banking system merely …

minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … methodology developed by Amiti and Weinstein (2013) to a rich dataset of matched bank-firm loans in the Portuguese economy for the … one banking relationship as long as they account for only a small share of the total loan volume of their banks. The …

Using detailed data of all German banks, we find that banks which have suffered heavy credit losses reduce their … assumption of constant leverage. Weakly capitalized banks grant fewer new loans than other banks. We control for credit demand … using a new method, the construction of tailored hypothetical bank competitors. …