stability and economic (productivity) growth is taken into account. Both sides of the trade-off are affected by banks' credit …-sensitive'. Differences in company productivity have a further effect on the profile of optimal risk weights, and may amplify the ‘flattening …

between bank credit and firm-level productivity in the context of different financial markets set-ups, we introduce a model of … group of European countries to explore the relation between bank credit and productivity following the main predictions of … the model. We estimate an extended set of elasticities of bank credit with respect to a series of productivity measures of …

alleviating credit constraints for high productivity firms. After the reform, better access to credit allowed these firms to … across firms, thus raising aggregate productivity. …