contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and … externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of … which banks are to be shut down before they can go bankrupt, and (ii) a loss allocation – or bailout – decision of who pays …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …

intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While …

Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the …

and study if the bank losses can be traced to the quality of bank governance. For this purpose, we examine the …" are then related directly to the magnitude of bank losses in the recent financial crisis. Our data confirms that … supervisory board (in-)competence in finance is related to losses in the financial crisis. Improved bank governance is therefore a …

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

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 …