We investigate how financial contracting interacts with lending channel effects by tracing the anatomy of a credit …-lending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing …

This paper uses a unique dataset where credit rejections experienced by euro area firms are matched with firm and bank … characteristics. This allows us to study simultaneously the role that bank and firm weakness had in the credit reduction observed in … the euro area during the sovereign debt crisis, and in credit developments characterising the post-crisis recovery …