Credit Lines as Monitored Liquidity Insurance: Theory and Evidence

126 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

The Credit Line Channel (2020, unknown): “, 2017); they are also costlier for firms with higher liquidity risk or higher aggregate risk exposure (Acharya et al., 2014; Acharya, Almeida and Campello, 2013), and banks with liquidity exposure on the funding side may face greater pressure on the asset side from credit line drawdowns (Ippolito e”
Bank liquidity provision across the firm size distribution (2020, background): “It is well known that giving the lender discretion to withdraw funds after a signal that the borrower has misbehaved can be beneficial (Dewatripont and Tirole, 1994; Acharya et al., 2014; Gorton and Kahn, 2000).”