restrictive bank loan supply shock has a strong and persistent negative impact on real GDP and the GDP deflator. This result comes … "spare tire" for the reduction in bank loans. We show that this result can be rationalized by a recently revived view of … the act of lending. Consequently, our findings indicate that a substitution of bank loans by other sources of financing …

We study how the Eurosystem Collateral Framework for corporate bonds helps the European Central Bank (ECB) fulfill its … collateral supply, thereby making the market more cohesive and complete. Following eligibility, bond-issuing firms reduce bank …

This paper empirically tests the role of bank lending tightening on non-financial corporate (NFC) bond issuance in the … eurozone. By utilizing a unique data set provided by the ECB Bank Lending Survey, we capture the "pure" credit supply effect on …. Focusing on a spectrum of aspects contributing to bank credit tightening, we document that banks' balance sheet constraints, as …