We analyze the impact of negative reference rates on the interest rate behavior of more than 500 Austrian banks from 2009Q1 to 2021Q4. Using panel vector error correction analysis with the Engle-Granger procedure in two steps, we establish a cointegration vector that links bank-specific lending...

This paper analyzes the private production of safe assets and its implications for financial stability. Financial intermediaries (FIs) originate loans, exert hidden effort to improve loan quality, and create safe assets by issuing debt backed by the safe payments from (i) their own loans and...

This study examines how dismantling Mafia-connected firms affects banks' lending practices. Using a unique dataset of 667 such firms and loan-level data from the European Central Bank, our analysis shows that anti-Mafia operations precede an increase in bank loans to businesses that operate in...

Physical climate risks can have a large regional impact, which can influence mortgage loans' credit risk and should be priced by the lenders. Motivated by the relevance of climate change for financial intermediaries, our paper aims at analysing if physical climate risks are being reflected in...

Targeted longer-term refinancing operations (TLTROs) helped supporting bank lending to firms and to households in the course of the COVID-19 pandemic. The use of TLTRO funding for mortgage loans to households had explicitly not been included into the targeted loan categories of these schemes,...

We investigate the interaction between monetary and macroprudential policy in affecting banks' lending and risk-taking behaviour using rich euro area credit registry data and exploiting a unique setting that combined a sharp and unexpected monetary tightening with a wave of macroprudential...

This paper documents a new dollar channel that transmits monetary policy across borders. Exploiting unique features of the syndicated loan market for identification, we show that changes in the euro-dollar exchange rate around ECB monetary policy announcements that are orthogonal to simultaneous...

Empirical evidence for advanced economies suggests that following a monetary tightening, commercial and industrial bank loans show a positive "puzzling response". Since there is no wide evidence for the Mexican case, this paper analyzes the response of bank loans at the sectoral level after a...

This paper presents an integrated risk management methodology for measuring and managing the economics, risks, and financial resources/constraints related to deposits and loans in a commercial bank. Within a comprehensive and integrated framework, we develop valuation and risk models for all...

This note examines the grants and loans provided by the European Union (EU) and China to the Western Balkan economies. The EU remains dominant in grant funding, with annual Instrument for Preaccession Assistance (IPA) grants averaging 0.8% of the region's GDP, far above the 0.02% of GDP from...

Most of peer-to-peer (P2P) online borrowers are small business managers. The learning behavior of borrowers in the P2P market is rarely studied. The aim of this paper is to identify the existence of borrowers' learning behavior in the P2P market using a large sample from renrendai.com, which is...

This study has a twofold objective. The first one is an assessment of the efficiency of monetary and capital-based macroprudential policy, defined as imposing less interest costs to loan borrowers (nonfinancial corporations and households). The second objective of this paper is the assessment of...

We extend the reference DSGE model used for policy analysis at the NBB with a financial sector, by incorporating multi-period fixed-rate corporate and mortgage loans, an imperfect pass-through from policy rates to the deposit rate, and bank capital re-quirements. Adding multi-period fixed-rate...

We show that life insurers have increased their lending in the private placement market over the past decade, totaling $849 billion, or 14%, on life insurers' balance sheets in 2024. A substantial part of the growth stems from private credit extension to financial borrowers and to privately...

This paper provides causal evidence on the effect of credit crunches on political polarisation. Combining data on bank-firm connections and electoral outcomes at the city-level during the 2008-2014 Spanish financial crisis, I construct an instrument for unemployment based on the city-level...

Assessing insolvency dynamics is essential for evaluating the financial health of nonfinancial corporations and mitigating macroeconomic and financial stability risks. This study leverages a newly created Statistics Canada dataset linking insolvency records with firm-level financial data to...

This paper conducts a meta-analysis of 24 studies evaluating the impact of formal loans on small and medium-sized enterprise performance. Using a Bayesian hierarchical model, the paper estimates that formal loans increase small and medium-sized enterprise employment by 12 percent, sales by 18.3...

Access to credit remains a universal challenge for firms, particularly for small and medium sized enterprises (SMEs). While numerous studies have examined the determinants of credit access, focusing primarily on borrower characteristics, lender policies, and formal institutional factors such as...

Student loans have taken on an increasingly significant role in funding the higher education experience and payments toward student loan debt have become an important part of many borrowers' overall financial plan. Using Brandwatch, this study analyzes X data to better understand student loan...

Digital transformation is widely acknowledged as a pivotal factor in reducing banks' marginal costs and enhancing the efficiency of credit risk management. Concurrently, it allows banks greater flexibility to adapt to shifts in market conditions, thereby optimizing adjustments to credit scale...

Amidst the global ascent of financial technologies (FinTech), Argentina presents a critical case for examining how these platforms shape debt relations among marginalized households. Employing a mixed-methods approach, this article draws on quantitative data from the Central Bank of the Republic...

Using a novel worldwide dataset of 5,264 syndicated loans issued to 329 firms from 2006 to 2021, we study how climate-related litigation risk affects firm's cost of borrowing. We find robust empirical evidence that firms targeted by climate lawsuits pay significantly higher spreads on their bank...

The EIB Lending Report shows where and how the EIB Group invested in 2024 - by country, sector, and priority - supporting climate, innovation and energy security across and beyond the European Union. It breaks down investment by the EIB Group's two entities, the European Investment Bank and the...

In Latin America, over 50% of the population has relied on loans from family members or friends, reflecting the importance of trust-based networks in response to financial exclusion. This study examines how distrust in the formal financial system influences the use of informal borrowing. Using...

Does the maturity of the relevant risk-free rate influence the strength of monetary policy pass-through to interest rates on new loans? To address this question, we present novel empirical evidence on lending practices across all euro area countries, using AnaCredit data covering nearly seven...

We use confidential loan-level data from the European Central Bank to investigate how changes in the countercyclical capital buffer requirement in Germany affect lending to firms. We find evidence showing that tightening the countercyclical capital buffer leads German banks to reduce the volume...