data on thousands of euro area firms, we study factors that affect the access to finance of SMEs. We find that changes in … bank funding costs and borrower leverage matter for firms’ access to finance. Increases in bank funding costs and borrowers … significantly improve access to finance of SMEs. Finally, access to finance is found to be positively related to firm size and firm …

Assessing when credit is excessive is important to understand macro-financial vulnerabilities and guide macroprudential … policy. The Basel Credit Gap (BCG) - the deviation of the credit-to-GDP ratio from its long-term trend estimated with a one … warning of banking crises. However, for a number of European countries this indicator implausibly suggests that credit should …

This paper analyzes the drivers of cross-border bank lending to 49 Emerging Markets (EMs) during the period 1990Q1 … literature has traditionally highlighted the influence of US monetary policy on driving cross-border bank flows, and more … decrease in bank leverage, our results indicate a broad-based overall contraction of cross-border lending if the shock …

activity. We examine the linkages between the financial and real sectors in the euro area, finding that (i) bank loan supply … responds negatively to declines in bank soundness; (ii) a cutback in bank loan supply has a negative impact on economic …. These estimates imply that the currently estimated bank losses would subtract some 2 percentage points from the euro area …

over two decades. A reduced-form equation is estimated on the basis of a bank profit maximization model that permits a …

This paper studies the relationship between banks' holdings of domestic sovereign securities and credit growth to the … lower credit growth to the private sector and with a higher return on assets of the banking sector. Analysis suggests that … the negative relationship between banks' claims on the government and private sector credit growth mainly reflects a …

This paper analyses the effect of asset prices on credit growth in France and tries to disentangle credit demand and … supply factors, both for the whole 1993-2010 period and during periods of financial instability. Using bank-level panel data … period, but without credit supply factors being singled out. By contrast, housing price growth has a significant effect …

We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt …

are experiencing credit booms. This paper analyzes the role of foreign-owned banks in these credit booms. The results show … financial conditions in the foreign bank''s home country …