Exploiting the Japanese banking crisis as a laboratory, we provide firm-level evidence on the real effects of bank … investors have similar effects. Moreover, bank mergers engineered to enhance bank stability appear to hurt the borrowers of the …

We analyse bidding incentives and present evidence on takeover premiums in Sweden’s mandatory bankruptcy auctions. The … 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 …

This paper analyzes the consequences of bank diversification into fee-based businesses. Universal banks raise welfare …

This Paper investigates the determinants of the takeover of a foreign bank by a domestic bank whereby the former … principle of home country control, the takeover moves responsibility for both the supervision of the foreign bank and the … bank). Moreover, the takeover is in general welfare improving for both countries. …

Banks play a central role in financing and monitoring firms in transition economies. This study examines how bank … competition affects the efficiency of credit allocation; monitoring of firms; and the firms' restructuring effort. In our model …, banks compete to finance an investment project with uncertain return. By screening the firm a bank learns about its …

This paper provides an explanation for the urge of banks to merge and expand scope. We build a model where bank … sufficiently profitable to give the bank the necessary ‘deep pockets’ to absorb these losses. The latter suggests that banking may …

We investigate how bank competition affects the efficiency of credit allocation, using a model of spatial competition … loans compared to the social optimum. Finally, we analyse how bank competition affects the firms' restructuring effort. We …