to manipulate liquidity positions of banks can affect bank lending. Our results suggest that bank specific liquidity is … important in credit supply. Moreover, in determining their lending, banks consider not only their individual liquidity position … but also the systemic liquidity. Hence, any monetary policy which can alter liquidity is potentially effective on credit …

for banks. Bank lending behavior responds significantly to reserve requirements and liquidity positions. Our analysis … allows us to identify a new channel that we name as the "liquidity channel". The channel works through a decline in bank … liquidity and loan supply due to an increase in reserve requirements. …

reserve requirement policy with bank lending. We identify a new channel that works through a decline in bank liquidity and … affect the funding needs and the liquidity position of the banking system. The consequent changes in bank liquidity have a …