crisis affect their corporate lending in Germany. Using unique bank-level exposure data, we distinguish between three … different types of bank exposures, i.e. direct exposure to the US real estate sector, direct exposure to subprime lenders in the …–region combinations with lower insolvency ratios. Hence possible losses abroad shift bank lending at home, and the size of this effect …

a bank which prices credit risk. Savers own both firms and the commercial bank while borrowers require loans from the … commercial bank to effect their consumption plans. The bank lends at a premium over the interest rate on central bank money in …