technique, the study shows that interbank borrowing has a significant impact on the bank credit, and an inverse relationship …

the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade …

Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

credit on firms' future profits. Consistent with the notion that lines of credit provide firms with unique financial … flexibility and enhance their strategic position within the industry, I find evidence that the acquisition of lines of credit … for firms in more competitive industries, fewer lines of credit are acquired per firm both in terms of the number and …

exchange (FX) debt inflows and an increase of reserve requirements on domestic bank deposits in Colombia during a strong credit … boom, as well as credit registry and bank balance sheet data. Our results suggest that first, an increase in the local …We study how capital controls and domestic macroprudential policy tame credit supply booms, respectively targeting …

investigate a specific type of externality that originates from those borrowers that obtain liquidity from more than one bank. In … this case, contagion may occur if a bank hit by a liquidity shock calls in some loans and borrowers then pay them back by …

in the form of deposits to households. For given bank equity, market discipline implies that banks can take more deposits …. Specifically, when bank equity is low, then optimal monetary policy stabilizes output by supporting bank lending rather than …

investigate a specific type of externality that originates from those borrowers that obtain liquidity from more than one bank. In … this case, contagion may occur if a bank hit by a liquidity shock calls in some loans and borrowers then pay them back by …