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 …

Credit availability from different sources varies greatly across firms and has firm-level effects on investment … extensive and intensive margins of different funding sources to study the role of firm choices on the transmission of credit … mostly rely on a small number of banks and internal funding. Our quantitative analysis shows that bank credit supply shocks …