bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until …Corporate credit lines are drawn more heavily when funding markets are more stressed. This covariance elevates expected … 2022, this impact was reduced by linking the interest paid on lines to credit-sensitive reference rates such as LIBOR. We …

contingent liquidity risk from the provision of credit lines to NBFIs; and (iii) Empirical work confirms bank-NBFI linkages …In recent years, assets of non-bank financial intermediaries (NBFIs) have grown significantly relative to those of …. We argue instead that NBFI and bank businesses and risks are so interwoven that they are better described as having …

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and … supply is ample and liquidity constraints, captured by credit limits, do not bind. Standard economic models predict a … bank overdraft facilities -- helps individuals smooth consumption in the event of transitory income shocks. This paper …

-shock bank capital, explain why banks were able to accommodate these liquidity demands …In March of 2020, banks faced the largest increase in liquidity demands ever observed. Firms drew funds on a massive … scale from pre-existing credit lines and loan commitments in anticipation of cash flow disruptions from the economic …

We study how the macroeconomic dynamics following credit cycles vary with business bankruptcy institutions. Using data … on bankruptcy efficiency and business credit around the world, we document that business credit booms are followed by … contrary, in settings with well functioning business bankruptcy, the aftermath of credit booms is characterized by moderate …

' provision of liquidity insurance in the form of credit lines, their significance in managing corporate liquidity, and the … conclude by discussing the increasing extension of bank credit lines to non-bank financial intermediaries, as well as the role …Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as …

we examine retail bank lending in Germany using a unique data set of German savings banks during the period 2006 through … bank lending and find that the US financial crisis induced a contraction in the supply of retail lending in Germany. While … nonaffected banks. This result is particularly strong for smaller and more liquidity-constrained banks as well as for mortgage as …

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

. Exploiting cross-county, cross-time shale discoveries that generated liquidity windfalls at local bank branches, we construct …We evaluate the impact of the credit conditions facing corporations on their emissions of toxic air pollutants … liquidity shocks through their branches in shale counties and (2) the degree to which a corporation in a non-shale county has a …