This study investigates the influence of macroprudential policies (MaPs) on corporate investment, employing firm-bank level microdata from the European Investment Bank Investment Survey (EIBIS) for the period 2015-2022. We initially document that MaP tightening, particularly through supply-based...

We empirically document deviations of residential real estate prices from fundamental values at the micro level and investigate their relationship with local bank lending growth during a period of unconventional monetary policy. Our findings indicate a positive relationship between credit growth...

This paper provides novel microlevel evidence that cross-border bank flows are an important means for households to access credit, not only in emerging markets but also in advanced economies. Using supervisory bank-level data alongside household credit and consumption data from Germany, we study...

We investigate the interaction between monetary and macroprudential policy in affecting banks' lending and risk-taking behaviour using rich euro area credit registry data and exploiting a unique setting that combined a sharp and unexpected monetary tightening with a wave of macroprudential...

We develop a simple model of financial intermediation with search and matching frictions between banks and firms. The model links credit market tightness - encapsulating the abundance of credit - to the search and opportunity costs of credit intermediation. Search costs generate lending to...

We develop a simple model of financial intermediation with search and matching frictions between banks and firms. The model links credit market tightness -encapsulating the abundance of credit- to the search and opportunity costs of credit intermediation. Search costs generate lending to...

The pace of globalization has slowed since the global financial crisis, raising concerns about widespread deglobalization and market fragmentation. We examine the effects of a deglobalization shock on bank lending, firm internal capital markets, and the real economy. Leveraging a unique dataset...

This paper provides novel micro-level evidence that cross-border bank flows are important for households' access to credit not only in emerging markets but also in advanced economies. These foreign bank flows can drive local credit credit booms that increase bank risk. We study how the influx of...

We exploit a nation-wide introduction of mandatory disclosure of borrowers' total credit exposures and show that sharing such information increases credit access independent of borrowers' history. Differentiating between borrowers applying to competitor banks and those reapplying to their...

Using unique nationwide property-level mortgage, flood risk, and flood map data, we analyze whether lenders respond to flood risk that is not captured in FEMA flood maps. We find that lenders are less willing to originate mortgages and charge higher rates for lower LTV loans that face...

Using granular data from the European corporate credit register, we examine how increases in macroprudential capital buffer requirements since the pandemic have affected bank lending behaviour in the euro area. Our findings reveal that, for the average bank, the buffer requirement increases did...

This study analyzes how fintech credit affects bank lending in Sub-Saharan Africa (SSA) and how this relationship is influenced by financial inclusion measured by bank branch networks. We utilized the system GMM to examine data spanning 19 SSA economies from 2013 to 2019. This study finds that...

This paper analyses lending behaviour and economic fluctuations in the Italian banking system as a whole and in the case of the Cooperative Credit Banks (CCBs) using time series data from 2000Q1 to 2022Q4. The specified models include the main determinants of loans to households and firms. In...

In this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal Crop Insurance Act of 1980, which significantly expanded and restructured the decades-old federal crop insurance program and adverse weather shocks - over-exposure of crops to heat...

This paper provides both theoretical and empirical analyses of the differences between BigTech lenders and traditional banks in response to monetary policy changes. Our model integrates Knightian uncertainty into portfolio selection and posits that BigTech lenders possess a diminishing...

This paper investigates the underlying dynamic relationships between monetary policy, bank lending, and inflation during the post-pandemic recovery era in the East African Community. To achieve this, I analysed monthly macroeconomic data on central bank rates, consumer price index, lending...

Purpose: Existing research on uncertainty and bank lending has focused entirely on aggregate uncertainty (i.e., economic policy uncertainty) and its subcomponents, but not considering other uncertainty measures from the specif-ic perspective of financial markets, especially the banking sector....

Local currency borrowers are statistically significantly affected by exchange rate fluctuations due to the bank lending channel. Using microdata on borrowers from Hungary, this study examines the spillover effects of foreign currency loans on local currency borrowers following an unexpected...

We show that the transmission of the European Central Bank’s (ECB) recent monetary policy tightening differs across banks depending on their level of excess reserves. Specifically, the net worth of reserve-rich banks may display a boost when the interest rate paid on reserves increases...

Bank lending to SMEs plays a vital role in economic growth, contributing significantly to employment and GDP. Access to bank lending is crucial for small- and medium-sized enterprises (SMEs), as they contribute significantly to global employment and GDP. New financial technologies promise better...

Amid the global COVID-19 crisis, governments worldwide introduced measures to support private enterprises. This study utilizes a newly curated panel database, encompassing the financial records of firms in Peru, to investigate the impact of a substantial governmentbacked loan guarantee program,...

We provide evidence on the effect of the slope of the yield curve on economic activity through bank lending. Using detailed data on banks' lending activities coupled with term premium shocks identified using high-frequency event study or instrumental variables, we show that a steeper yield curve...

This paper investigates the impact in the short/medium term of M&As made by 14 Italian banks quoted on the stock exchange for the period 1999-2016. After dividing the banks into two groups by size and degree of internationalisation, we sought to ascertain whether different initial conditions...

Commercial-paper backup lines account for a substantial share of undrawn loan commitments in the corporate sector, but have despite this received scant attention in the credit-line literature. In this paper, I study the liquidity-insurance properties of backup lines using a comprehensive loan-...

This paper examines the impact of monetary policy instruments such as discount rate, reserve requirement and liquidity requirement on bank credit to the private sector in the Kingdom of Eswatini. Monthly data sourced from the Central Bank of Eswatini and Eswatini Central Statistics Office is...