We study how contingent capital affects banks' risk choices. When triggered in highly levered states, going …-concern conversion reduces risk-taking incentives, unlike conversion at default by traditional bail-inable debt. Interestingly …, contingent capital (CoCo) may be less risky than bail-inable debt as its lower priority is compensated by a lower induced risk …

percent less cyclical than other local banks. The result is credit supply-side driven and especially strong for savings banks … on financial stability and the real economy. We investigate the cyclicality of SME lending by local banks with vs … credit demand-side factors. The public mandate is set by local governments and stipulates a deviation from strict profit …

non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …The US credit boom has been identified as one of the causes of the global financial crisis and the resulting debt … overhang is seen as the primary reason for the weak economic recovery. Most of the existing literature links the credit boom to …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … one banking relationship as long as they account for only a small share of the total loan volume of their banks. The …

management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial … heterogeneity in the balance sheet characteristics that affect banks’ responses to liquidity risk. Overall, bank balance sheet …Activities of international banks have been at the core of discussions on the causes and effects of the international …

After the collapse of Lehman Brothers, a rapid and far-reaching shrinkage of international banks’ assets with a focus … risk taking, both high average income and a strong balance sheet expansion in the pre-crisis period are found to be …

sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk and to a lesser extent, by … in general, better capitalized and less leveraged banks have outperformed their peers, a finding that supports …

We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its … recourse to the LOLR facility (a) to derive banks’ willingness-to-pay for liquidity through a one-week repo and (b) to show … that a bank’s willingness-to-pay is a good indicator for the probability that this bank draws on the LOLR facility. Our …

dollar-denominated securities. Affected banks also take higher risk in loans. …We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as …

customer deposits would have been associated with a higher probability of financial distress for savings banks and credit … experiencing a critical event, implying approximately two additional savings banks and two additional credit cooperatives in … banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity …