policy shocks to bank lending and real activity. We first use a large panel of U.S. banks to show that the sensitivity of … bank profits to interest rates increases significantly with measured income gap, even when banks use interest rate … derivatives. We then document that, in the cross-section of banks, income gap predicts the sensitivity of bank lending to interest …

financial integration in the market for bank liabilities. I focus on news about economic fundamentals as the key source of … recent Eurozone crisis. Bank balance sheets amplify and propagate fluctuations through three channels when leverage … non-tradable sector assets alter bank lending to tradable sector firms (intra-national spillover channel). Third, domestic …

policy on bank-level lending and leverage by drawing on a single natural experiment. In 1920, when U.S. monetary policy was … stance. Macroprudential policy caused both bank-level lending and leverage to fall significantly (by 11%-14%), whereas LAW … had only weak and, in some areas, even perverse effects on these bank-level outcomes. I show that the macroprudential tool …

the existence of a public interest to resolve an ailing bank, rather than to open normal insolvency proceedings (NIPs … economy stemming from a bank's failure under NIPs through the interruption of the lending activity ("credit channel"). The … and households due to the abrupt closure of a bank. In a second step, the impact of the credit shortfall on real outcomes …