We quantify the role of financial factors behind the sluggish post-crisis performance of European firms. We use a firm-bank-sovereign matched database to identify separate roles for firm and bank balance sheet weaknesses arising from changes in sovereign risk and aggregate demand conditions. We...

We quantify the role of financial factors behind the sluggish post-crisis performance of European firms. We use a firm-bank-sovereign matched database to identify separate roles for firm and bank balance sheet weaknesses arising from changes in sovereign risk and aggregate demand conditions. We...

Using credit-registry data for Spain and Peru, we document that four main types of commercial credit-asset-based loans, cash-flow loans, trade finance and leasing-are easily identifiable and represent the bulk of corporate credit. We show that credit dynamics and bank lending channels vary...