the credit supply process. The economy is susceptible to self-fulfilling credit freezes: banks abstain from lending when … they fear that other banks will withhold lending, and the resultant credit contraction impedes economic growth. Capital … credit to the real economy. However, the equilibrium interest rate reveals public information about economic fundamentals and …

. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank …

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante "credit freezes," whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante “credit freezes,” whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank …