opted for issuing blanket guarantees on bank liabilities to stop or avoid widespread bank runs. In theory, blanket … guarantees can prevent bank runs if they are credible. However, guarantee could add substantial fiscal costs to bank …

interventions aimed at alleviating the bank capital crunch. We find that the growth of firms dependent on external financing is … disproportionately positively affected by bank recapitalization policies, and that this effect is quantitatively important and robust to …