This paper considers a simple model of credit risk and derives the limit distribution of losses under different … losses (EL), and its effect on portfolio risk is ambiguous. But once EL is controlled for, neglecting parameter heterogeneity … leads to overestimation of risk. These results are verified empirically where it is shown that heterogeneity in the default …

This paper investigates the benefits of banks’ direct investment in foreign subsidiaries and branches for non …-financial multinationals. The paper builds on the literature on international banks which has primarily focused on the implications for host … the volume of FDI by home market banks boosts FDI by non-financial firms from the same home market. Domestic and third …

equilibrium when banks have monopoly power, justifying a Pigouvian tax in this case. …

differences in financial factors, which may reflect differences in country risk and the legal and regulatory framework that banks …

The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international …

We study the sensitivity of banks' credit supply to small and medium size enterprises (SMEs) in the UK to banks … branches in the UK, we connect firms' access to bank credit to the financial condition (i.e., bank health and the use of core … deposits) of all bank branches in the vicinity of the firm over the period 2004-2011. Before the crisis, banks' local financial …

information on a firm's credit demand, we develop a direct measurement for access to credit and provide for the first time an … empirical evaluation of these methods. We find that information on the usage of credit is not sufficient to identify financially …

This paper proposes a theoretical framework to analyze the impacts of credit and technology shocks on business cycle … dynamics, where firms rely on banks and households for capital financing. Firms are identical ex ante but differ ex post due to … implications of such defaults for both households and banks. Results from a calibrated version of the model highlights the role of …

Banks play a critical role in international trade by providing trade finance products that reduce the risk of exporting … highly concentrated in a few large banks. The two principal trade finance instruments, letters of credit and documentary … existence of substantial fixed costs in the provision and use of these instruments. Letters of credit are employed the most for …

bank's characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …