We exploit a unique monthly dataset of bank balance sheets to document the lending behaviour of euro area banks that … against exposure to sovereign debt. Controlling for bank characteristics and demand at the level of country of residence, we …

data set. A detailed robustness analysis is conducted, in order to assess how the estimation results are affected by …

provision of central bank liquidity to banks has on the credit supply to firms. We control for credit demand by examining firms … banks bid more, and larger borrowers benefited more. The opportunity to substitute long-term central bank borrowing for …