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 … percent less cyclical than other local banks. The result is credit supply-side driven and especially strong for savings banks …

credit borrowing? We first provide evidence suggesting that - even in Germany - particularly weak banks used the European … credit risk. Second, we show that zombie firms, which obtained additional funding from banks relying to a larger extent on … third, zombie firms that obtained further bank funding and such trade credit after the VLTROs had an elevated expected …

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

lending more strongly than non-affected banks. In the second stage, we find that firms whose relationship banks reduce credit … provide much collateral. We document that firms partially offset reduced credit supply by establishing new bank relationships …

lending can be explained by a shift in credit towards both export-intensive firms and small banks without foreign asset … exposure that have a higher share of exporting firms in their credit portfolio. We also find that German regions where these …

experienced pronounced credit booms at the same time that these imbalances were building up, this paper investigates the link … between domestic credit developments and the current account balance, distinguishing between a credit pull and a credit push …

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 …

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 …