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empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and … conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area …
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Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...
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