firms accelerate, loan growth. We find that small firms increase trade credit, a substitute credit, indicating a strong loan …-desirable alternative. Using trade credit is propitious since unlike commercial paper (investigated by previous researchers), it is widely … used by the small firms suffering the loan decline. Surprisingly, we also find large firms increase trade credit, a puzzle …

Empirical estimations of the drivers for loan extension mainly apply the outstanding stock of bank credit as the … and securitisation activity. This paper specifically applies a variable of new credit extensions for eight Euro area … countries in a simultaneous equation panel model to evaluate potential determinants for credit extension, and compares the …

This paper integrates a money and credit market into a static approximation of the baseline New Keynesian model based … on a money-and-credit-in-the-utility approach, in which real balances and borrowing contribute to the household’s utility … the banking sector. Our approach gives rise to a credit channel, in which current and expected future interest rates on …

Empirical research on the monetary transmission mechanism considering credit developments is almost exclusively limited … to the amount of outstanding credit in an economy. Two issues arise out of this. First, stock-flow inconsistencies might … occur. Second, the change of the outstanding amount of credit on banks ́balance sheets does not consist only of new lending …