We develop a model of bank lending that allows for credit rationing in equilibrium. Recognizing that small firms incur … a higher percentage cost of monitoring than large firms, the model shows that the incidence of bank credit rationing … consistent with a pattern of a differentially greater degree of rationing of credit to small borrowers during the Great Recession …

that excessive credit growth, credit cycles, and bank failures are phenomena related to distinct patterns of banks …

This paper takes advantage of access to detailed matched bank-firm data to investigate whether and how employment … decisions of SMEs have been affected by credit constraints in the wake of the Great Recession. Variability in banks’ financial … health following the 2008 crisis is used as an exogenous determinant of firms' access to credit. Findings, relative to the …

This paper takes advantage of access to detailed matched bank-firm data to investigate whether and how employment … decisions of SMEs have been affected by credit constraints in the wake of the Great Recession. Variability in banks' financial … health following the 2008 crisis is used as an exogenous determinant of firms' access to credit. Findings, relative to the …

, the cyclicality of nonbanks - as opposed to bank health - explains the majority of the decline in originations during both …

We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who … borrow from the financial sector are important for the business cycle frequency fluctuations in bank and nonbank credit …

case of the Cooperative Credit Banks (CCBs) using time series data from 2000Q1 to 2022Q4. The specified models include the …-run relationship between credit and economic variables. In the second, on the basis of appropriate exogeneity tests, only the credit … affected by economic fluctuations in the case of the CCBs, namely these tend to reduce credit by less or not at all during …

-performing loans during contractionary periods. The results indicate that the effects of a permanent shock to bad loans on the excess … of credit are significant and persistent for bad loans to firms, but not for bad loans to households or in the case of … Cooperative Credit Banks, who adopt more efficient lending policies. …

Recent regulatory efforts aim at lowering the cyclicality of bank lending because of its potential detrimental effects … credit demand-side factors. The public mandate is set by local governments and stipulates a deviation from strict profit … percent less cyclical than other local banks. The result is credit supply-side driven and especially strong for savings banks …