Acharya, Viral V.; Imbierowicz, Björn; Steffen, Sascha; … - 2019
liquidity does not translate into lower loan spreads for high-risk banks, even as it lowers deposit rates for both high-risk and … low-risk banks. This adversely affects the balance sheets of high-risk bank borrowers, leading to lower payouts, lower … capital expenditures, and lower employment. Overall, our results suggest that banks' capital constraints at the time of an …