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 …

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 …

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 …

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 …

changes in credit conditions, such as shocks to M2 or lending levels, do not once other policy variables are taken into …

that lead to "large" movements in credit costs and economic activity. The large movements in credit costs are mainly due to … the reaction of both term premia and credit spreads that are typically absent from the standard model of monetary policy …