's credit decisions affect their future income. We use the bank's cutoff rule, which is based on the applicants' credit scores … mostly driven by the use of borrowed funds to undertake investments, and is stronger when individuals are more credit-constrained. …

towards banks contracts the amount and maturity of corporate debt and leads firms to slow investment and forego growth … these newly binding credit constraints firms simply shrink their operations. …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …