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 …

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 …

This paper investigates the role of bank credit in predicting U.S. recessions since the 1960s in the context of a … bivariate probit model. A set of results emerge. First, credit booms are shown to have strong positive effects in predicting … declines in the business cycle at horizons ranging from six to nine months. Second, I propose to isolate the effect of credit …

In this paper the authors present an agent-based model of a credit network economy. The artificial economy includes … market, the labor market, the credit market and the housing market. A set of computational experiments, based on numerical … conditions required by the banking system to grant a mortgage. The authors find that easier access to credit inflates housing …

This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit … households’ creditworthiness conditions required by banks in order to grant a mortgage. Results show that easier access to credit …

Credit spreads significantly change across the credit cycle and many have argued that excessive fluctuations in lender … effects between the credit boom in the 2000s and the aftermath of the subsequent financial crisis. Using unique data on the … significant reductions in credit spreads that disproportionately affect riskier loans. Our identification strategy exploits …

potential GDP leads to greater credit fluctuation in economies where:(i) competition among banks and,(ii) competition from non-bank …This paper empirically assesses the effects of competition in the financial sector on credit procyclicality by … estimating both an interacted panel VAR (IPVAR) model using macroeconomic data and a single-equation model with bank …