...Athanasios Tsagkanos; Konstantinos Andriakopoulos Purpose The aim of this research is to empirically examine if both credit cycle of large lending and business cycle affect the ex-post credit risk (i.e. non-performing loans (NPLs)) in the banking system of USA. A unique data set is created...

... of deleveraging has been scarce before the 2008–2009 recession, and there have been limited possibilities to investigate a full credit cycle. As far as we are aware, no article distinguishes between positive innovations of credit from negative ones to understand the differences between the mechanisms...