in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …

reallocates mostly towards safer producers. Lending standards propagate bank capital shortfalls through labor misallocation … increasing. Finally, with endogenous lending standards, first-moment bank capital shocks look like second-moment shocks. …

This paper provides evidence on the strategic lending decisions made by banks facing a negative funding shock. Using … bank-firm level credit data, we show that banks reallocate credit within their loan portfolio in at least three different … transmission of the funding shock to credit supply by 22, 8 and 10%, respectively. …

-economic shock measurement …

This paper studies the long-run evolution of bank risk and its links to the macroeconomy. Using data for 17 advanced … economies, we show that the riskiness of bank assets declined materially between 1870 and 2016. But even though bank assets have … become safer, the losses on these assets are associated with increasingly large output gaps. Before 1945, bank asset returns …

risk. An adverse supply shock leads to a deterioration of firms' riskiness 10 per cent above the average PD. Contractionary …

the role played by bank-level variables, banking sector features in each country, and the specific characteristics of the …/substitution effects of both bank- and portfolio-level variables with the characteristics of the banking sector when explaining credit risk …

standards change in reaction to two specific macroeconomic developments, namely an increase in bank funding costs and a sudden …. Insofar, we provide evidence of heterogeneity in the bank lending channel, depending on the situation of the lenders and the …