Plausibly Exogenous [1863] - Bank Credit (03/10/2025)

LHS Variable
Firms’ financial choices

RHS Variable
Supply of bank credit

Source of Exogenous Variation
EBA capital exercise in October 2011, which required a subset of European banks to raise their Core Tier 1 capital ratio to 9% by June 2012.

- Serena, Spaliara, and Tsoukas (2022), “International bank credit, nonbank lenders, and access to external financing”