The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components … credit aggregates are not valid tests of this theory …

first examine the impact of economic policy uncertainty on aggregate bank credit growth. Then we analyze commercial bank … macroeconomic controls, economic policy uncertainty affected bank level credit growth, and (ii) whether there is variation in the … on bank credit growth. Since this impact varies meaningfully with some bank characteristics - particularly the overall …

Using confidential regulatory firm-bank-loan level data from the U.S., we document four new facts about the credit … market. First, private SMEs typically utilize all available bank credit which comprises their entire balance sheet debt …, compared to large listed firms who can switch between corporate bonds and drawing from credit lines. Second, SMEs borrow …

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 across these loan types. Moreover, aggregate credit supply shocks …

We study the impacts of the 2009 monetary stimulus and its interaction with infrastructure spending on credit … allocation. We develop a two-stage estimation approach and apply it to China's loan-level data that covers all sectors in the … economy. We find that except for the manufacturing sector, monetary stimulus itself did not favor SOEs over non-SOEs in credit …