standards change in reaction to two specific macroeconomic developments, namely an increase in bank funding costs and a sudden …. Insofar, we provide evidence of heterogeneity in the bank lending channel, depending on the situation of the lenders and the …

at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money …, but at the cost of potentially disrupting bank lending. Our aim is to avoid this potential disruption. Building on the … recent literature on CBDCs, in this study we propose what we call the "CBDC next-level model," whereby the central bank …

contract their balance sheets. These bank responses generate externalities that propagate in the form of macro … macro-financial feedback loops can significantly affect macroeconomic outcomes and bank-specific stress tests results. The … heterogeneity in bank lending responses matters: it determines how each bank fares under adverse conditions and the external effects …

. We focus on one particular failure of the credit channel in which although the central bank is infusing money into the … may be useful in increasing bank lending. Further, small shifts in monetary or fiscal policy can lead to collapses in …