capital standards, and cost of bank equity determine credit reallocation, sectoral expansion and trade patterns …

bank credit reallocation with endogenous firm entry and exit that allows for both theoretical and quantitative analysis. By …

estimation of a large VAR through Bayesian techniques. Loans to households emerge as the most important driver of economic …

. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank …, small, and innovative firms) have a multitude of bank lenders, where one may be special in the sense of relationship lending … financing. To fill this gap, we analyze the optimal debt structure in a model that allows for multiple but asymmetric bank …

bank and a crowdlending platform and show that the entry of crowdlending can induce a switching effect as well as a credit …

bias in corporate taxation. It is well known that this reform reduces bank leverage. This paper analyzes a novel …

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm's type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …

We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its … core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and … market equity values diverge, especially during crises; (2) Tobin’s Q predicts future bank profitability; (3) neither book …