In the recent theoretical literature on lending risk, the common pool problem in multi-bank relationships has been … credit-fie information on distressed lending relationships in Germany. In particular, it includes information on bank pools … bank pools increases the probability of workout success and that coordination costs are positively related to pool size. We …

paper introduces a measure of the threat that a bank poses to the system. Such a measure, called threat index, may be … individual institutions to the risk in the system. Although the threat index and the default level of a bank both reflect some …

bankrupt firm’s main creditor (a bank) to influence the auction outcome. Rules prevent the bank from bidding directly. However …, the bank often finances a bidder in the auction, relaxing liquidity constraints. We show that the optimal bid strategy for … a bank-bidder coalition mimics the monopolist sales price. In the region where the bank’s debt is impaired, this optimal …

out bad loans and special bank closure provisions, are interpreted in our framework. …