We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the … financial health of lenders. Following a violation banks restrict usage of lines of credit by raising spreads, shortening … during the recent crisis. Banks in worse financial health are more likely to restrict access to credit lines following a …

Contractions in credit supply can lead firms to reduce their level of employment, yet little is known about how these … affects credit provision and its effects on employment beyond firm-level aggregates. To do so, we use a novel dataset built … from alternate sources. The decrease in credit supply led to a drop in firm-level employment, with effects concentrated …

We investigate the role of the judicial system on whether or not the firms obtain the credit they applied for, by … property rights protection), the lower the probability that the firms are credit constrained. Our results are robust to … that these variables have considerable economic impact: the probability to obtain credit is up to 40% higher in countries …