separate firm-borrowing shocks from bank-supply shocks using a vast sample of matched bank-firm lending data. We decompose … aggregate loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks. The high degree of … role for granular shocks as in Gabaix (2011). We show that idiosyncratic granular bank-supply shocks explain 30-40 percent …

shocks. We show that firms whose debt" had a higher fraction of bank loans in 1989 performed worse from 1990 to 1993. This … affect performance during this period of time. We find that firms that were more" bank-dependent also invested less during … this period than other firms. This evidence points to an" adverse effect of bank-centered corporate governance, namely that …

main bank, using the sample of Japanese manufacturing firms constructed by Hayashi and Inoue (1991). For either of two … classifications of firms by their access to a main bank, there is no evidence that main bank ties mitigate the sensitivity of … investment to the firm's liquidity. The large effect of main bank ties reported in Hoshi, Kashyap, and Scharfstein (1991) is most …

not group members, but nevertheless have strong ties to a main bank also invest and sell more than firms without strong … bank ties …

type of hidden capital and each class of bank, the model develops estimates of the stock-market, interest-rate, foreign …-exchange, and real estate sensitivities of returns to bank stockholders. Only the stock-market sensitivities prove significant at … five percent. This finding leads us to investigate what happens when we analyze Japanese bank stock returns by means of …

bank debt as their prime source of financing now rely more heavily on the public capital markets. This trend was … 1988). we demonstrated that investment by firms with close bank relationships appears to be less liquidity constrained than … investment by firms without close bank ties. We interpreted this finding as evidence that bank ties tend to mitigate information …

, real world exports plunged 17 percent while GDP fell 5 percent. This paper examines whether deteriorations in bank health … 1990 through 2010, which enables us to match exporters with the main bank that provides them with trade finance. Our point …