This paper studies loan conditions in a context where private banks can operate in two credit markets: a free … credit to firms that are ex ante more difficult to lock-in in the free-market-larger firms in more contested regions. The … paper highlights a novel channel whereby earmarked credit is used by private banks to extract more rents. Once a firm …

-up in lending flows to the private sector, rendering the recovery credit-less. This paper uses data on output and credit to … study the relative roles of demand and supply drivers of credit growth during economic recoveries on a sample of advanced … and emerging countries between 1980 and 2014. Using a simple endowment economy model, the paper shows that credit …

highlight that information spillovers between lenders may operate outside credit registries …