This study considers whether the associations between credit ratings and banks’ capital structure can be explained by the channels of asymmetric information, namely, countries’ economic cycle and development, banking supervision and private monitoring. Using an international sample of 391...

What are the macroeconomic consequences of changing aggregate lending standards in residential mortgage markets, as measured by loan-to-value (LTV) ratios? In a structural VAR, GDP and business investment increase following an expansionary LTV shock. Residential investment, by contrast, falls, a...