How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending …

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

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

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

about the pass-through of monetary policy. On the one hand, negative rates could lead to declining bank profitability making … interest rates per se. This paper uses a large micro level data set of the German bank universe to examine how banks behave in … this uncharted territory. The evidence found suggests that bank’s business model, i.e. the share of overnight deposits …

, which may have intensified the diabolic loop between sovereign and bank credit risks. By using a novel bank-level dataset …