This paper proposes a theory of shadow bank runs in the presence of sponsor liquidity support. We show that liquidity … lines designed to insulate shadow banks from market and funding liquidity risk can be destabilizing, as they provide them … with incentives to acquire private information about their assets' type. This can lead to inefficient market liquidity dry …

the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade …

We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who … borrow from the financial sector are important for the business cycle frequency fluctuations in bank and nonbank credit …

results also show that after accounting for financing risks, credit risks, market power and bank business model, our empirical …This paper studies bank loan pricing in the euro area over the period October 2008 to October 2014. This period was … characterised by market fragmentation and extended liquidity provision by the ECB. For our analysis we develop a theoretical …

We examine the impact of emergency liquidity assistance (ELA) on bank lending in eleven euro area countries during the … determination of bank lending, which includes the amount of ELA received by each bank, allowing us to investigate the direct effect …