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We estimate a structural model of bank portfolio lending and find that the typical U.S. community bank reduced its … effects (consistent with a reduction in the liquidity of assets held on bank balance sheets) and by reduced loan supply …
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). Key contributions are the use of a unique data set of SME lending by over 400 German banks and relating systematic risk to … granted in Basel II for SMEs relative to large firms. For SME loans in the corporate portfolio of the Internal Ratings …-Based Approach and also for SME loans treated under the revised standardized approach of Basel II, our asset correlation estimates …
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