Do Banks Lend to Distressed Firms? frbsf.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from frbsf.org Daily Mail and Mail on Sunday newspapers.
Standard economic models typically ignore the role of the financial system in transmitting exchange rate changes to the real economy. This column uses German data to show that large banks with high net foreign currency asset exposure increase lending to export-intensive firms and – through interbank markets – to small banks without foreign currency asset exposure but with a