This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante “credit freezes,” whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

. Examining Federal Reserve survey data, we find evidence that the DFA prompted a relative tightening of bank credit standards on …

Post-crisis stress tests have altered banks' credit supply to small business. Banks affected by stress tests reduce … credit supply and raise interest rates on small business loans. Banks price the implied increase in capital requirements from … concentrated among risky borrowers. Stress tests do not, however, reduce aggregate credit. Small banks increase their share in …

businesses, they are likely to face credit rationing in financial markets. If true then policies that promote lending to small …

banks impacted by the real estate prices collapse systematically contracted their credit to all small firms throughout the U …. Despite this offsetting expansion, the net effect of the contraction in credit was negative, with lower aggregate credit and …

private lenders faced no credit risk but decided who to serve: the Paycheck Protection Program (PPP), which provided loans to …