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We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters … credit allocation, captured by Greenwood and Hanson (2013)'s ISS indicator, helps predict downside risks to GDP growth and … systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …
Persistent link: https://www.econbiz.de/10012103777
Adequate loan classification practices are an essential part of a sound and effective credit risk-management process in … a bank. Failure to identify deterioration in credit quality in a timely manner can aggravate and prolong the problem …
Persistent link: https://www.econbiz.de/10014399648
became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by … better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the …
Persistent link: https://www.econbiz.de/10010481421
Credit spreads rise after a monetary policy tightening, yet spread reactions are heterogeneous across firms. Exploiting … with high leverage experience a more pronounced increase in credit spreads than firms with low leverage. A large fraction … of this increase is due to a component of credit spreads that is in excess of firms' expected default. Our results …
Persistent link: https://www.econbiz.de/10012485947
We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt …
Persistent link: https://www.econbiz.de/10014395407
Despite robust deposit growth, credit growth has been sluggish in the Philippines. We attribute this to legacy …
Persistent link: https://www.econbiz.de/10014396582
This paper analyses the effect of asset prices on credit growth in France and tries to disentangle credit demand and … period, but without credit supply factors being singled out. By contrast, housing price growth has a significant effect … during periods of financial instability only, even after controlling for credit demand effects. These results show that …
Persistent link: https://www.econbiz.de/10014396650
We examine the risks to bank soundness associated with credit booms in a large set of countries. Using bank-level data … in 90 countries between 1995 and 2005, we analyze the relationship between credit growth and bank soundness taking into …, credit growth becomes less dependent on soundness during booms. These findings shed some light on why credit booms are often …
Persistent link: https://www.econbiz.de/10014397410
This paper examines the recent credit slowdown among Middle Eastern and North African (MENA) countries from three … analytical angles. First, it finds that, similar to other regions and to its past history, a credit boom preceded the current … credit growth across banks and countries …
Persistent link: https://www.econbiz.de/10014397564
Persistent link: https://www.econbiz.de/10009614958