on financial stability and the real economy. We investigate the cyclicality of SME lending by local banks with vs … percent less cyclical than other local banks. The result is credit supply-side driven and especially strong for savings banks …Recent regulatory efforts aim at lowering the cyclicality of bank lending because of its potential detrimental effects …

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 …

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 …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

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. …

finance premium, while a BGG model generates too low volatility. The full model also matches the procyclicality of bank … leverage, unlike the GK model. For a reasonably calibrated combination shocks to the net worth of banks and non-financial firms …

non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …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 …

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 …

-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 …