This paper examines how UK banks channel capital inflows to the individual sectors of the domestic economy and to overseas residents. Information on the source country of foreign capital deposited with UK banks allows us to construct a novel Bartik instrument for capital inflows. Our results...

This paper examines how UK banks channel capital inflows to the individual sectors of the domestic economy and to overseas residents. Information on the source country of foreign capital deposited with UK banks allows us to construct a novel Bartik instrument for capital inflows. Our results...

This paper studies how the lender structure of external debts affects open economies' credit conditions via a model with heterogeneous lenders of different sizes. While atomic lenders take the collateral price as given, large lenders internalize the pecuniary externality whereby selling...