developing a new methodology to separate firms' credit shocks from loan supply shocks, using a vast sample of matched bank …-firm lending data. We decompose loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks … economy, which creates a role for granular shocks, as in Gabaix (2011). As a result, idiosyncratic bank shocks - movements in …

us to match exporters with the main bank that provides them with trade finance. Our point estimates are economically and …