We draw on a new data set on the use of Swiss francs and other currencies by European banks to assess the patterns of … foreign currency bank lending. We show that the patterns differ sharply across foreign currencies. The Swiss franc is used …

assets held by firms and banks is determined by the technology choices by firms and the portfolio diversification choices by …. On the other hand, if productivity shocks have an idiosyncratic component, portfolio diversification by banks may be a …We study an environment where the capital structure of banks and firms are jointly determined in equilibrium, so as to …

cycle comovement increases when credit embodies public bonds held by banks, a bank financing to the public sector. However …, in the post ]WWII era, this financial backup to the public side of the economy has occurred at the expense of bank …

ability to repay their debt. Using loan-level data from U.S. banks' regulatory filings, this paper studies the effect of … implies that firms do not perfectly hedge against exchange rate risk and that this risk translates into credit risk for banks …

and industrial loans by U.S. banks. An increase in the broad dollar index by 2.5 points (one standard deviation) reduces U ….S. banks' corporate loan originations by 10 percent. This decline is driven by a reduction in the demand for loans on the …

core. The estimated model matches four facts about banks' Tobin's Q that summarize bank leverage dynamics. (1) Book and … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin's Q are mean reverting but highly …We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its …

We address the question of how lending market competition, measured by the bargaining power of banks, affects the …