Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization. …

creditors’ runs. We find that the principal lender, ‘the bank’, makes few concessions to the borrower and that there is a … virtual absence of debt forgiveness. Finally, the bank relies heavily on the highly collateralized value of its loan in making …

In this Paper, we examine bank lending decisions in an economy with spillover effects in the creation of new investment … one bank does set a lower interest rate to capture a larger market, it may simultaneously reduce its lending. Our results … suggest that volatility and unpredictability in bank lending capacities may be a key indicator of various adverse outcomes in …

: the borrowers' higher effort levels raise current profits (while each bank retains an informational advantage), but the …

This paper studies German bank lending during the Asian and Russian crises, using a bank level data set from the … Deutsche Bundesbank. Our aim is to gain more insight into the pattern of German bank lending during financial crises in …

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 …

behavior following monetary policy shocks. In a first step, we show that the sensitivity of bank profits to interest rates … income gap also predicts the sensitivity of bank lending to interest rates, both for commercial & industrial loans and for … mortgages. Quantitatively, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income …