asymmetric information the banks face the risk of adverse selection. Credit Value-at-Risk (CVaR) regulation counters the problem … of low quality, i.e. high risk, loans and therefore reduces the risk of the bank loan portfolio. However, CVaR regulation … distorts the operation of credit markets. We show that a binding CVaR constraint introduces credit rationing and lowers social …

Can the risk of losses upon premature liquidation produce bank runs? We show how a unique run equilibrium driven by … norms on bank default, such that mandatory stay is triggered before all illiquid assets are sold. Since illiquid assets are …

Using a large dataset of firm-bank and ownership information for 23 European countries over 2008-2015, we study the … dynamics of bank relationships after corporate acquisitions and the effects of changing banks on firm performance. Foreign … fixed capital and trade credit. In contrast, domestic acquirers remove domestic but add foreign banks. The latter mainly …

discipline by monitoring counterparty credit risk and theories highlighting that secured loans are less informational sensitive …, we find that banks with low credit worthiness replace unsecured borrowing with secured loans. Moreover, riskier lenders …