00000nam 2200000za 4500 9.849162 CaOODSP 20221107153842 cr ||||||||||| 171221s2017 oncd #ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2017-57E-PDF Holden, Tom D. Credit crunches from occasionally binding bank borrowing constraints? [electronic resource] / by Tom D. Holden, Paul Levine and Jonathan M. Swarbrick. Ottawa : Bank of Canada, 2017. iii, 37 p. : graphs Bank of Canada staff working paper, 1701-9397 ; 2017-57 "December 2017." Includes bibliographical references. "We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings. However, even moderately large shocks cause their borrowing constraints to bind, leading to contractions in credit offered to firms, and requiring the intermediaries to raise further funds by paying the cost to issue equity. This leads to the occasional sharp increases in interest spreads and the countercyclical, positively skewed equity issuance that are characteristic of the credit crunches observed in the data"--Abstract, p. ii. Text in English, abstract in English and French. gccst Banks gccst Credit gccst Loans Levine, Paul. Swarbrick, Jonathan M. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2017-57. (CaOODSP)9.806221 PDF 702 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2017-57-eng.pdf