that well-functioning credit markets would reflect a bank channel for monetary policy at work, we test whether a change in … and the associated change in interest rate does not affect change in bank credit, change in total debt and the proportion … of bank credit in total debt for any of the firms. We discuss the policy implications of the findings. …

decisions of SMEs have been affected by credit constraints in the wake of the Great Recession. Variability in banks' financial … health following the 2008 crisis is used as an exogenous determinant of firms' access to credit. Findings, relative to the … Belgian economy, clearly highlight that credit matters. They show that SMEs borrowing money from pre-crisis financially less …