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 …

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 …

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 …

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 …

of individual-level credit bureau records and utilizing approaches that aim to isolate supply from demand considerations … bankcard credit limits than residing in a neighborhood where the share of American Indian residents is low. We further find … that consumer's credit history is a robust and quantitatively more important predictor of awarded bankcard credit limits …

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 …

analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … of seven emerging countries, the first without Islamic banks, and the second with a dual banking system including both …

We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs … resulting from an increased risk exposure. We find that when the shock distribution displays “fat” tails, extreme segmentation …