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This paper surveys the theory on zombie lending incentives and the consequences of zombie lending for the real economy. It also offers a historical perspective by reviewing the growing empirical evidence on zombie lending along three dimensions: (i) the role of under-capitalized banks, (ii)...
Persistent link: https://www.econbiz.de/10013190998
result suffered significant losses. We conclude that global banking flows, rather than global imbalances, determined the …
Persistent link: https://www.econbiz.de/10012462576
We study the crash of bank stock prices during the COVID-19 pandemic. We find evidence consistent with a "credit line drawdown channel". Stock prices of banks with large ex-ante exposures to undrawn credit lines as well as large ex-post gross drawdowns decline more. The effect is attenuated for...
Persistent link: https://www.econbiz.de/10012496112
equity. The dwindling pool of common equity in the banking system may have been one reason for the continued reluctance by …
Persistent link: https://www.econbiz.de/10012461761
substitutes, performing substantially similar activities, with banks inside and NBFIs outside the perimeter of banking regulation …
Persistent link: https://www.econbiz.de/10014528356