that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for …

impact of bank credit supply frictions on firm performance. I exploit differences in the composition of banks' liabilities … structure during the financial crisis of 2007-2009 as a source of exogenous variation in the availability of bank credit to … nonfinancial firms, in order to identify the causal relationship between bank credit supply and firm performance, measured by firms …

commercial-paper market during the COVID-19 pandemic as an exogenous shock to the supply of market-provided liquidity. I find … have despite this received scant attention in the credit-line literature. In this paper, I study the liquidity … that backup lines provide commercial-paper issuers with reliable liquidity insurance and that banks' liquidity provision …

We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated … exploit quasi-exogenous variation in manufacturers' liquidity cost and need following the Volkswagen emissions scandal to …

paper, we find more complex effects on bank lending from Quantitative Easing (QE) introduced by the Federal Reserve Bank in … 2008. The novelty of our approach is to augment the model with bank-level heterogeneity. While there is a relation between … lending and the type of assets purchased by the central bank, the impact on similarly QE-exposed banks is also crucially …

liquidity in normal times. Second, idiosyncratic transitory shocks introduce randomness in covenant violations that limits bank … aggregate liquidity shocks and firms against losing liquidity at will of banks. During aggregate liquidity shocks, banks need to … ration liquidity, and covenants allow banks to revoke credit lines if firms' accounting-performance measures fall below a …

investigates how liquidity shocks affect such activities. Empirical results demonstrate that “borrow to lend” activities have …” activities. Liquidity shocks induce large private firms to take part in more “borrow to lend” activities, but they exert no …

bank monitoring based on banks' requests for information on their existing borrowers and we investigate the effect of bank … exogenous variation in bank monitoring. Our identification strategy is supported by a theoretical model predicting that a … decrease in the tax rate improves bank incentives to monitor borrowers by increasing returns from lending. We find that bank …