Shadow banks had a negligible presence in the US corporate loan market in the 1990s, but by 2016 they funded about 45% of the outstanding corporate term loans. Consistent with banking theories on liquidity provision, shadow banks remained absent from the credit line business. Nonetheless, they...

We consider a model in which banks vulnerable to liquidity crises may receive support from the lender of last resort (LLR). Higher liquidity standards, though costly to banks, give the LLR more time to find out the systemic implications of denying support to the banks in trouble. By modifying...

We show that firm demand-side factors are strong drivers of procyclical refinancing be- havior over the credit cycle using novel data from the Shared National Credit program. Firms are more likely to refinance early when credit conditions are good to keep the ef- fective maturity of their loans...

We consider the liquidity shock banks experienced following the collapse of the asset-backed commercial paper market in the fall of 2007 to investigate whether banks' liquidity condition affect their ability to provide liquidity to corporations. We find that banks that borrowed more from the...

We provide evidence that credit lines offer liquidity insurance to borrowers. Borrowers are able toextensively use their credit lines in recessions and ahead of credit line cuts. In fact drawdowns andchanges in drawdowns predict internal credit rating downgrades and credit line cuts,...