We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top … current 3% LRR might even reduce bank stability, counter to regulatory intentions. This is because the allocational effect … caused by the LRR, which makes bank loan portfolios more alike, may turn beneficial risk spreading into harmful risk …

the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade …

technique, the study shows that interbank borrowing has a significant impact on the bank credit, and an inverse relationship …

This paper proposes a stochastic model of a bipartite credit network between banks and the non-bank corporate sector … that encapsulates basic stylized facts found in comprehensive data sets for bank-firm loans for a number of countries. When … number of loans seems fuzzy. Distinguishing between contagion due to interbank credit and due to joint exposures to …

Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

We analyze the determinants of real estate and credit bubbles using a unique borrower-lender matched dataset on … mortgage loans in Spain. The dataset contain real estate credit and price conditions (loan principal and spread, and the … contract) and the lender identity, over the last credit boom and bust. We find that lending standards are softer in the boom …

The US credit boom has been identified as one of the causes of the global financial crisis and the resulting debt … overhang is seen as the primary reason for the weak economic recovery. Most of the existing literature links the credit boom to … non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …

Bank market power, both in the loan and deposit market, has important implications for credit provision and for … offer demandable contracts. This structure allows us to review the literature on the role of market power for credit … identifies relevant channels that deserve further analysis, especially given the rising importance of bank market power for …

that excessive credit growth, credit cycles, and bank failures are phenomena related to distinct patterns of banks …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …