Decentralised finance (DeFi) lending protocols have experienced significant growth recently, yet the motivations driving investors remain largely unexplored. We use granular, transaction-level data from Aave, a leading player in the DeFi lending market, to study these motivations. Our theoretical and empirical findings reveal that the search for yield predominantly drives liquidity provision in DeFi lending pools, whereas borrowing activity is mainly influenced by speculative and, to some extent, governance motives. Both retail and large investors seek potential high returns through market movements and price speculation, however the latter engage in DeFi borrowing relatively more than the former also to influence protocol decisions and accrue more significant governance rights.

We investigate whether female representation on bank boards influences lending to polluting firms. Using confidential credit register data matched with firm-level greenhouse gas emissions, we isolate credit supply effects. Our findings reveal that banks with more gender-diverse boards lend less to more polluting firms, particularly those with the highest emission levels. These results are robust to endogeneity concerns as well as a range of alternative model specifications and econometric variations. Evidence from a European Central Bank large exposures data set confirms that this effect holds across different lending contexts. We also find that gender-diverse boards are less likely to initiate new lending relationships with highly polluting firms, suggesting an effect on both the intensive and extensive margins of credit allocation.

We investigate the impact of capital requirements on bank lending across institutional sectors, focusing on their transmission channel and the interaction with monetary policy. By employing confidential loan-level data for the euro area, we find that the reaction of banks to capital surcharges for Other Systemically Important Institutions (O-SII) depends on the level of the required buffer and the institutional sector of the borrowing counterpart. Tighter requirements correspond to stronger lending contractions with targeted banks curtailing their lending mostly towards credit institutions. Loan supply to non-financial corporations is almost unchanged, mainly as a result of the incentives embedded in the ECB's targeted long-term refinancing operations. Our results provide evidence on the interaction between macroprudential and monetary policy, and the positive effects of combining two different sets of incentives to support the resilience of the banking system and credit supply to the real economy.