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What Do a Million Observations on Banks Say about the Transmission of Monetary Policy
We study the monetary-transmission mechanism with a data set that includes quarterly observations of every insured U.S. commercial bank from 1976 to 1993. We find that the impact of monetary policyExpand
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Zombie Lending and Depressed Restructuring in Japan
In this paper, we propose a bank-based explanation for the decade-long Japanese slowdown following the asset price collapse in the early 1990s. We start with the well-known observation that mostExpand
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The Impact of Monetary Policy on Bank Balance Sheets
This paper uses disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission. We argue that if the lending view is correct, one should expect theExpand
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Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups
This paper presents evidence suggesting that information and incentive problems in the capital market affect investment. We come to this conclusion by examining two sets of Japanese firms. The firstExpand
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Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance
In this paper we use the relative movements in bank loans and commercial paper to provide evidence on the existence of a loan supply channel of monetary policy transmission. A first necessaryExpand
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A Macroprudential Approach to Financial Regulation
Many observers have argued that the regulatory framework in place prior to the global financial crisis was deficient because it was largely "microprudential" in nature. A microprudential approach isExpand
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Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit‐taking
What ties together the traditional commercial banking activities of deposit-taking and lending? We argue that since banks often lend via commitments, their lending and deposit-taking may be twoExpand
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The Role of Banks in Reducing the Costs of Financial Distress in Japan
This paper explores the idea that financial distress is costly because free-rider problems and information asymmetries make it difficult for firms to renegotiate with their creditors in times ofExpand
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An Analysis of the Impact of 'Substantially Heightened' Capital Requirements on Large Financial Institutions
We examine the impact of “substantially heightened” capital requirements on large financial institutions, and on their customers. Our analysis yields three main conclusions. First, the frictionsExpand
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Cyclical implications of the Basel II capital standards
This article reviews the economic efficiency implications of the Basel II capital standards. The authors argue that the mapping from measures of loan risk to capital requirements should not beExpand
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