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 …

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 … becomes a branch of the latter. Each bank is initially supervised by a national agency that cares about closure costs and … deposit insurance payouts, and may decide the early closure of the bank on the basis of supervisory information. Under 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 … a bank-bidder coalition mimics the monopolist sales price. In the region where the bank’s debt is impaired, this optimal …

Banks play a central role in financing and monitoring firms in transition economies. This study examines how bank …, banks compete to finance an investment project with uncertain return. By screening the firm a bank learns about its … profitability. Surprisingly, it is found that an increase in bank competition need not reduce a bank's screening incentive even …

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 …