We propose a novel mechanism, “financial dampening,” whereby loan retrenchment by banks attenuates the effectiveness of … monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank … exploiting linkages through BHC-internal capital markets across spatially-separate BHC member-banks. We estimate that retrenching …

that makes risky long-term loans to firms, funded by deposits from savers. Government guarantees create a role for bank …-economic volatility. They redistribute wealth from savers to the owners of banks and non-financial firms. Current capital requirements are …

: the internal rating systems -- Chapter 3) Credit guarantees: the role in bank lending -- Chapter 4) Banks, firms and …’s dynamics. Chapters discuss the role of bank lending in firms’ financing during the recent financial crisis, as well as issues … in credit risk management. The discussion also examines regulatory requirements impacting banks and firms (Basel III) and …

types of bank capital affect bank lending and whether this relation changes in times of the global financial crisis. Chapter …Chapter 1 Introduction -- Chapter 2 The use of financial derivatives and risks of U.S. bank holding companies … -- Chapter 3 Quality of bank capital and bank lending behavior during the global financial crisis -- Chapter 4 Competition in the …

relationship banks gather information on their borrowers, which allows them to provide loans for profitable firms during a crisis …. Due to the services they provide, operating costs of relationship- banks are higher than those of transaction-banks. In … our model, where relationship-banks compete with transaction-banks, a key result is that relationship-banks charge a …

external financing, and bank-level indicators of banking fragility. Credit booms in industrial and emerging economies show …