A crucial condition for the existence of a credit channel through bank loans is that monetary policy should be able to … change bank loan supply. This paper contributes to the discussion on this issue by presenting empirical evidence from dynamic … the average bank reduces its lending more sharply in reaction to a restrictive monetary policy measure, the lower its …

hampered the smooth transmission of accommodative monetary policy. Using bank level data from 2007 to 2015, we directly measure … bank in the same month for loans to small and large firms (the "Small Firm Financing Premium", SFFP). We assess the role … played by both bank and macroeconomic factors in explaining the variation in the SFFP across countries and through time. We …