The bank lending channel theory posits that during monetary contractions banks restrict some firms' loans, thus … firms accelerate, loan growth. We find that small firms increase trade credit, a substitute credit, indicating a strong loan … demand. It supports the bank lending channel: they do not voluntarily cut bank loans since they increase a less …

produced by the banks themselves. The paper concludes that, even though bank-firm relations are still deeply embedded in …

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a … shocks have a very persistent effect on real activity. In determining the speed of recovery from an adverse economic shock …, the most important factor is the extent to which the shock erodes entrepreneurial wealth. …

The Czech banking system is seen by many observers to be the most successful of all former socialist economies'. But … have Czech banks successfully provided worthy enterprises with sufficient credit from the funds made available to them …? Using data from the Czech National Bank and data on individual Czech banks, I find evidence that in 1995 banks are provided …

Central bank credit has expanded dramatically since the beginning of 2007 in some of the euro area member countries … an independent monetary policy. We find that inflation was the main determinant of central bank credit prior to 2007 … that includes (i) a credit channel and (ii) a common pool problem in a monetary union. We illustrate that the interaction …

. The credit transmission is analyzed through its narrow nature or so called bank lending channel. In order to explain how … first one is the traditional bank lending channel explained by Bernanke and Blinder model and the second one is the credit …Research subject of this paper is the credit transmission mechanism in the Republic of Macedonia or in other words this …

In this paper, we test the bank lending channel of monetary policy transmission in Sweden. Using a panel of bank … balance sheet data covering the period 1998:M1 to 2003:M6, we test for bank loan supply shifts by segregating banks by asset … affected by monetary policy, which supports the hypothesis of the bank lending channel …

different states of the economy. These findings highlight the role of M2 growth as a primary instrument and the bank lending …