00000nam 2200000zi 4500 9.877096 CaOODSP 20221107164901 m o d f cr cn||||||||| 190726t20192019onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng fre n-cn--- FB3-5/2019-25E-PDF Swarbrick, Jonathan M., author. Lending standards, productivity and credit crunches / by Jonathan Swarbrick. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2019. ©2019 1 online resource (iii, 36 pages) : charts (some colour). text txt rdacontent computer c rdamedia online resource cr rdacarrier Bank of Canada staff working paper, 1701-9397 ; 2019-25 "July 2019." Includes bibliographical references (pages 27-31). "We propose a macroeconomic model in which adverse selection in investment drives the amplification of macroeconomic fluctuations, in line with prominent roles played by the credit crunch and collapse of the asset-backed security market in the financial crisis. Endogenous lending standards emerge due to an informational asymmetry between borrowers and lenders about the riskiness of borrowers. By using loan approval probability as a screening device, banks ration credit following financial disturbances, generating large endogenous movements in total factor productivity, explaining why productivity often falls during crises. Furthermore, the mechanism implies that financial instability is heightened when interest rates are low"--Abstract, page ii. Includes abstracts in English and French. gccst Credit gccst Interest rates gccst Productivity Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2019-25. (CaOODSP)9.806221 PDF 1.52 MB https://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-25-eng.pdf