Meeting of 6-7 March 2024
We find that banks experiencing large deposit outflows reduce credit, but not the interest rate they charge, to the same borrower relative to other lenders.
- We find that banks experiencing large deposit outflows reduce credit, but not the interest rate they charge, to the same borrower relative to other lenders.
- This credit restriction is stronger for fixed rate and longer maturity loans, but not for riskier borrowers.