The study looked at why banks change their lending policies during financial crises. They found that Danish banks mainly adjusted their credit policies towards small and medium-sized firms due to the bank lending channel. The balance sheet channel also played a role, but was weaker than expected. Struggling firms were discouraged from applying for credit during the crisis. Banks that were struggling themselves provided less credit. Firms couldn't easily switch banks to get more credit. The financial crisis also led non-financial firms to seek more credit right after the crisis.