Several papers find a positive association between a bank's equity stake in a borrowing firm and lending to that firm … endogeneity. To distinguish the two, we study a German tax reform that permitted banks to sell their equity stakes tax-free. After … the reform, many banks sold their equity stakes, but did not reduce lending to the firms. Thus, our findings question …

on financial stability and the real economy. We investigate the cyclicality of SME lending by local banks with vs …Recent regulatory efforts aim at lowering the cyclicality of bank lending because of its potential detrimental effects … maximization and a sustainable provision of financial services to local customers. We find that banks with a public mandate are 25 …

conditions after the bankruptcy of a US investment bank, Lehman Brothers. This paper examines the association between external … quarterly bank-firm lending data with detailed information on borrowers and lenders. Our results indicate that foreign sales are … insensitive to variations in external finance. While German banks affected by the crisis have significantly reduced their credit …

-level financial statements for the 2004-2010 period together with the financial statements of each firm's relationship bank(s). We use … real economy. We investigate the importance of the bank lending and firm borrowing channel in the international … transmission of bank distress to the real economy - in particular, to real investment and labor employment by nonfinancial firms …

This paper provides evidence of deliberate private-information disclosure within banks’ international business networks …. Using supervisory trade-level data, we show that banks with closer ties to a target advisor in a takeover buy more stocks of … find such effects for bank connections to acquirer advisors or for trades in acquirer stocks. Target advisors benefit from …

-based capital regulation significantly affected low capitalized banks. The impact depends on a bank's credit risk model, i …This paper examines how Basel III capital reforms affected bank lending in Ger- many. We focus on the increase of ….e. whether a bank applies the standardized approach (SA) or an internal ratings-based approach (IRBA) to determine risk weights …

-through in monopolistic banking markets. Our data,covering all 1,555 small and medium sized banks in Germany, provides a clear … market rates from their depositors. Because high market-power banks inour sample are relatively more profitable, they seem to …

). Key contributions are the use of a unique data set of SME lending by over 400 German banks and relating systematic risk to … granted in Basel II for SMEs relative to large firms. For SME loans in the corporate portfolio of the Internal Ratings …-Based Approach and also for SME loans treated under the revised standardized approach of Basel II, our asset correlation estimates …

consistency of own funds requirements with the riskiness of SME. In both the French and the German sample, results suggest that … the relative differences between the capital requirements for large corporates and those for SME (in other words the … capital relief for SME) are lower in the Basel III framework than implied by empirically estimated asset correlations. Results …