Agarwal, Sumit; An, Xudong; Cordell, Larry; Roman, Raluca A. - 2020
projections as an exogenous shock to banks and analyze how this shock is transmitted to consumer credit markets. First, we … document that banks in the 90th percentile of the capital gap reduce their new supply of risky credit by 13 percent compared … with those in the 10th percentile and cut their overall credit card risk exposure on an annual basis. Next, we show that …