systemic importance and its approximate scale-­free distribution; (ii) on the preeminence of credit institutions as the main …

or negative. Financially riskier borrowers with positive soft information are more likely to obtain credit from … banks. As a consequence, relationship banks do not have higher credit risk levels. Loan officers at relationship banks thus …

/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are … show that the effect is larger for banks that ex ante benefitted more from the guarantee. We show that both the credit …

We propose a new method for measuring the quality of banks credit portfolios. This method makes use of information … impounded in bank share prices by exploiting differences in their sensitivity to credit default swap spreads of borrowers of … varying quality. The method allows us to derive a credit risk indicator (CRI), which is the perceived share of high risk …

Abstract: We analyze the impact of the countercyclical capital buffers held by banks on the supply of credit to firms … suggest that countercyclical capital buffers help smooth credit supply cycles and in bad times have positive effects on firm … credit availability, assets, employment and survival. Our findings therefore hold important implications for theory and …