Understanding Bank and Nonbank Credit Cycles: A Structural Exploration

Abstract

BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The papers are on subjects of topical interest and are technical in character. The views expressed in them are those of their authors and not necessarily the views of the BIS.This publication is available on the BIS website (www.bis.org).

Monetary Transmission & Small Firm Credit Rationing Stable-Coin Configuration Opportunities to Raise Small Firm Credit Flows

“…Paradoxically regulatory caution that reduces short term growth also potentially reduces longer term crisis induced financial system damage, thereby supporting longer-term GDP growth [55]. Outside the banking system, but forming part of a firm's monetary resources, is unregulated trade debt [56] and less regulated "shadow bank" lending whose flow, aligning to commercial bank lending [57,58] is procyclical.…”