Relationship lending is a common practice in credit financing all over the world, particularly in Germany. On the basis of a comprehensive data set comprising information on firm-bank relationships for more than 16,000 observations, this study analyses the determinants of relationship lending in Germany. We find that small, young and R&D-intensive firms tend to choose relationship lending. Furt...

We explore the impact of low and negative monetary policy rates in core world economies on bank lending four small open – Canada, Chile, Czech Republic Norway using confidential bank-level data. show that these depends interest rate level core. During normal times, cuts can reduce credit supply economies. In contrast, when are low, further expansionary increases economies, consistent with an in...

Bank leverage constraints can emerge from regulatory capital requirements as well central bank collateral in reserve lending facilities. While these two channels are usually examined separately, we able to compare them with the help of a money creation model which reserves have be acquired settle interbank liabilities. In particular, show that regard monitoring, monetary policy via leads unique...

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Authorized to Appraise Date: October 6, 2003 IBRD Amount ($m): Bank Approval: February 27, 2004 IDA Amount ($m): Global Supplemental Amount ($m): 5.50 Managing Unit: AFTES Lending Instrument: Specific Investment Loan (SIL) Status: Lending Sector: General agriculture, fishing and forestry sector Theme: Biodiversity (P); Other environment and natural resources management (P); Environmental polici...

We consider the interaction between the roles of a bank as a facilitator of payments in the economy and as a lender. In our model, banks make loans by issuing digital claims to an entrepreneur, who then uses them to pay for inputs. Issuing digital claims has two effects on a bank’s liquidity. First, some of these claims used as payment are cashed in before the project is over, necessitating tra...

I analyze banks’ incentives to acquire expertise in judging the credit-worthiness of borrowers in an industry with uncertain business conditions. The optimal industrial organization of bank lending features several banks with industry expertise, as well as a competitive fringe of banks without such expertise. The analysis provides a foundation for analyzing the relative merits of focus vs. dive...

We use an information-theoretic approach to describe changes in lending relationships between financial institutions around the time of the Lehman Brothers failure. Unlike previous work that conducts maximum likelihood estimation on undirected networks our analysis distinguishes between borrowers and lenders and looks for broader lending relationships (multi-bank lending cycles) that extend bey...

Using the data of individual loan contracts extended by the Japan Finance Corporation for Small and Medium Enterprise (JASME), which is one of the predecessor institutions of the Japan Finance Corporation (JFC) that aimed at lending to small and medium enterprises (SMEs), we examine whether the JASME’s lending substituted for the reduced lending supply by private banks during the period of the ...

We thank staffs of the Board of Governors of the Federal Reserve and of the Federal Reserve Bank of New York, participants at the Federal Reserve System applied microeconomics conference, the Federal Deposit Insurance Corporation Annual Bank Research Conference and seminar participants at Villanova University for valuable comments. The views presented in this paper are solely those of the autho...