In a similar vein, on the whole, research does better at identifying these “credit channel” mechanisms in the context of particular stressed episodes than in longer-run averages.
11 Be that as it may, it is beyond doubt that there has recently been an adverse shock to bank balance sheets – involving capital, liquidity, and a potent “asymmetric” information mechanism affecting a wide range of banks. I will pick out four elements in the story, involving liquidity, counterparty-credit risk and capital.