This paper examines how wholesale funding affects the extent to which banks supply credit to their borrowers depending on macroeconomic conditions. We find that banks relying more heavily on wholesale funds provided more credit during the pre-crisis period. This result implies that the increase in credit supply by high wholesale-funded banks led to the lending boom, and thus the increased the financial fragility in the banking system during the boom. High wholesale-funded banks, however, cut their lending more significantly during the crisis, suggesting that they contributed to the severe credit crunch. We also find that riskier banks with high wholesale dependence increased risky lending during the crisis and post-crisis periods.