show that the incidence of inefficient credit termination and subsequent firm liquidation is contingent on the borrower … inefficient credit decisions than monopoly relationship lending or homogeneous multiple banking, provided that the relationship …

By using short-term direct finance firms of the highest credit quality expose themselves to rollover risk in the public … debt markets. Firms insure themselves against this risk by securing backup lines of credit from banks that they may use … of firm's publicly observable credit quality. Under plausible assumptions about the cost of bank borrowing the model …

macroprudential policy is represented by a convex dependence of bank capital requirements on the quantity of uncollateralized credit …

lending in the sense that some socially productive firms are denied credit due to excessively high interest rate. …