lending can be explained by a shift in credit towards both export-intensive firms and small banks without foreign asset … exposure that have a higher share of exporting firms in their credit portfolio. We also find that German regions where these … reallocation effects are stronger experience higher output growth. In economic terms, we show that such regions grow by 1 …

firms to these firms' credit constraints at two contrasting points of the business cycle. We show that relationship lending … alleviates credit constraints during a cyclical downturn but not during a boom period. The positive impact of relationship …