Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral may amplify the …

investigate a specific type of externality that originates from those borrowers that obtain liquidity from more than one bank. In … this case, contagion may occur if a bank hit by a liquidity shock calls in some loans and borrowers then pay them back by …

banks to have private information about the risk of their assets. We show how banks' asset risk affects funding liquidity in …

credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks’ treatment of real … estate collateral during the Covid-19 crisis. First we find evidence of significant frictions in the trans-mission of asset … price dynamics to collateral values. Despite this we find that lending relationships reliant on real estate collateral …

the credit risk of their corporate loan portfolios when the latter are used as collateral in the Eurosystem’s monetary … actually used as Eurosystem collateral, particularly for large loans. The less conservative estimates of risk by IRBs relative … findings suggest the existence of a collateral-related channel through which the use of IRB ratings may influence the internal …

evidence for the existence of a bank lending channel of monetary policy transmission in the euro area. In addition, and in … potential negative repercussions on real economic growth of bank balance sheet impairments arising in the context of the …