A number of countries' authorities put in place bank rescue packages using public funds in response to the global … financial crisis. Were these public recapitalisations followed by a reduction of risk in banks' loan books? To answer this … question, in this paper the balance sheets and syndicated loan portfolios of 87 large internationally active banks …

market. When supported banks' investment strategy differed materially from that of the average bank it was in holding less …Banks that enjoyed generous external financial support tended to under-price risk in the international syndicated loan … market and did not show signs of innovation in their loan participations. Loans arranged by such banks had on average lower …

We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using …) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … bank return while endogenously producing riskier loans for all banks in our sample (this effect being most powerful for …

central bank liabilities that are the counterpart of forex reserves. Even if the immediate change in bank reserves due to FX … intervention is offset by the sale of securities, bank lending may still be stimulated, running counter to the aims of the monetary … authority. In this paper, we empirically investigate the impact of banks’ holdings of liquid government securities, generated by …