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 …

initial share of bond- relative to bank-based finance; this effect weakens, and may even reverse, in economies with a low … when bank lending contracts. …

that well-functioning credit markets would reflect a bank channel for monetary policy at work, we test whether a change in … and the associated change in interest rate does not affect change in bank credit, change in total debt and the proportion … of bank credit in total debt for any of the firms. We discuss the policy implications of the findings. …