We provide evidence that a weak banking sector has contributed to low productivity growth following the European … natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by … cutting back on lending but also by reallocating credit to firms in financial distress with prior underreported loan loss …

This paper proposes a tractable way to incorporate lending standards ("credit qualification thresholds") into macro … rate sufficiently compensates banks for the borrowers' default risk. Firms denied credit cut employment and labor … reallocates mostly towards safer producers. Lending standards propagate bank capital shortfalls through labor misallocation …

While regulatory capital buffers are expected to be drawn to absorb losses and meet credit demand during crises, this …-cyclical behaviour to preserve capital ratios. By employing granular data from the credit register of the European System of Central … Banks, we isolate credit supply effects and find that banks with little headroom above regulatory buffers reduced their …

represents 15% of the Czech consumer credit market over the period 2002-2012. We find an important time dimension to the links …

Systemically Important Banks (G-SIBs) on bank lending behaviour. Using a difference-in-differences estimation strategy, we find no … effect of the reforms on overall credit supply, while at the same time documenting a substantial decline in borrower- and …

We study the impact of higher bank capital buffers, namely of the Other Systemically Important Institu- tions (O … O-SII reduced, in the short-term, their credit supply to households and financial sectors and shifted their lending to … less risky counterparts within the non-financial corporations. In the medium-term, the impact on credit supply is defused …

explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …

strategy for a comparable sample of banks. We find that banks participating in the stress tests reallocate credit away from …

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper … analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects …. First, the "cliff-effect", which refers to sudden increases in impairments. It occurred under IAS 39, as credit losses were …