In this paper we investigate whether macroeconomic uncertainty could distort banks’ allocation of loanable funds. To provide a road– map for our empirical investigation, we present a simple framework which demonstrates that lower uncertainty about the return from lending should lead to a more unequal distribution of lending across banks as managers take advantage of more precise knowledge of di...

We present an empirical analysis of the European electronic interbank market of overnight lending e-MID during the years 1999-2009. After introducing the market mechanism, we consider the activity, defined as the number of trades per day; the spreads, defined as the difference between the rate of a transaction and the key rates of the European Central Bank; the lending conditions, defined as th...

We propose a simple model of inter-bank borrowing and lending where the evolution of the logmonetary reserves of N banks is described by a system of diffusion processes coupled through their drifts in such a way that stability of the system depends on the rate of inter-bank borrowing and lending. Systemic risk is characterized by a large number of banks reaching a default threshold by a given t...

In this paper we investigate whether macroeconomic uncertainty could distort banks’ allocation of loanable funds. To provide a road– map for our empirical investigation, we present a simple framework which demonstrates that lower uncertainty about the return from lending should lead to a more unequal distribution of lending across banks as managers take advantage of more precise knowledge of di...

We provide novel empirical evidence on the effects of cross-border bank lending emerging market economies' (EMEs) macro-financial conditions. identify causal by leveraging heterogeneity in size distribution bilateral to construct granular instrumental variables for aggregate 22 EMEs. Cross-border credit causes higher domestic activity EMEs and looser financial Financial condition indices ease, ...

iv Foreword The AIDS epidemic is one of the greatest development challenges of the 20th century. Since 1986 the World Bank has supported member country efforts to fight the epidemic in many ways, including lending, economic and sector analysis, grant support, technical assistance, and policy advice. This paper is the first comprehensive desk study of all World Bank HIV/AIDS-related activities f...

I study the role of deposit accounts in bank-firm lending relationships, using a dataset with detailed information about all Norwegian firms’ bank deposit and loan account balances. I show that firms are more likely to increase borrowing from a bank where they hold deposit accounts, and less likely to end the lending relationship. In regressions with both firm and bank fixed effects, I find tha...

In this paper we investigate how country shareholding arrangements affect the lending of multilateral development banks (MDBs) under different economic conditions and over time. To do so, we consider three different “types” of MDBs—one dominated by non-borrowers (the World Bank), another controlled by borrowing countries (the Corporación Andina de Fomento, CAF), and a third where control is mor...