Bank-dependent industries in six euro area countries were more affected than others when threatened with a credit squeeze, a model outlined in a recent ECB working paper has found.

Andra Buca and Philip Vermeulen, in Corporate investment and bank-dependent borrowers during the recent financial crisis, use a new set of credit tightening indexes from the ECB Bank Lending Survey to analyse the effect of bank credit tightening on real firm investment. The authors note in response to tightening