controls was to reduce the cost of borrowing, expand access to credit, and increase the return on savings. However, we find … collapse of credit to micro, small, and medium enterprises; shrinking of the loan book of the small banks; and reduced … borrowers; and (ii) alternative policies could be preferable to address concerns about the high cost of credit …

aftermath of a banking crisis. Contemporary crises are not accompanied by declines in aggregate bank deposits, and credit does … not fall relative to output, although the growth of both deposits and credit slows down substantially. Output recovery … begins in the second year after the crisis and is not led by a resumption in credit growth. Banks, including the stronger …