We identify the origin of the contradicting perspectives on credit creation offered by Austrian, Mainstream and Post …-exist any transaction and loan. We develop a unified framework of credit creation based on three leading variables: (i) the … amount of collateral assets accepted, (ii) the level of leverage and (iii) the level of trust and confidence. As credit …

bank- rm level credit data, we show that banks reallocate credit within their domestic loan portfolio in at least three … in which they are heavily specialized. Third, they reallocate credit towards low-risk fi rms. These reallocation effects … the transmission of the funding shock to credit supply by 22, 8 and 10%,respectively …

credit market and in funding markets. The reduction in the supply of credit by Eurozone banks caused riskier borrowers to …. Although global bank lending is often reported to amplify the international credit cycle, we show that foreign banking acted as … a shock absorber that weathered the real consequences of the credit crunch in Europe …

power for economic growth and bank lending in the United States and the euro area than the spot IBOR-OIS, credit default … swap spreads or bank bond credit spreads …

bank credit reallocation with endogenous firm entry and exit that allows for both theoretical and quantitative analysis. By … also redirect existing credit to more productive entrants. This reduces banks’ dependence on household deposits that are …

-dependent capital ratio that combines concern for both credit growth and SEL has a positive effect on output growth while mitigating the …