costly capital in a bank run model with endogenous bank portfolio choice and run probability, and show that capital … should be designed considering both sides of banks' balance sheet, and that its effectiveness depend on the costs of both …

interconnectedness on the banks' failure probability can be alleviated if bank capital regulation is properly designed. This paper …This paper proposes that whether interconnectedness among banks leads to financial instability depends on banks … and the banks' failure probability. In the model, banks adopt the Value-at-Risk rule to make the capital structure …

firms (i.e., firms with few tangible assets and bank-dependent borrowers) and for banks that presumably rely more on "soft …We show that competition adversely affects the "specialness" of bank lending. In particular, we observe that the … positive abnormal return on the borrowing firm's stock after the announcement of a bank loan is reduced in US states that …

The aim of this study is to explore the relation between loan portfolio quality and lending in European banks over 2005 …-2014. We focus on lending behavior of banks from distressed countries since the Euro sovereign debt crisis. Our results confirm …

granted immediately after a bank branch robbery. We find significant differences between the conditions of loans granted after …

We build a general equilibrium model of banks' optimal capital structure, where bankruptcy is costly and investors have … heterogenous endowments and incur a cost for participating in equity markets. We show that banks raise both deposits and equity …

We study the effects of bank-specific capital requirements on Small and Medium Enterprises (SMEs) in the UK from 1998 … monetary policy. Monetary policy only affects firms with higher credit risk and those borrowing from small banks, whereas …

Do banks with low capital extend excessive credit to weak firms, and does this matter for aggregate efficiency? Using a … unique data set that covers almost all bank-firm relationships in Italy in the period 2004-2013, we find that, during the … Eurozone financial crisis: (i) Under-capitalized banks were less likely to cut credit to non-viable firms. (ii) Credit …