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 …

conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks try to maintain risk …

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 …

the credit cycle from the micro rating data. We relate this cycle to the business cycle, bank lending conditions, and …We study the relation between the credit cycle and macro-economic fundamentals in an intensity-based framework. Using … financial market variables. In line with earlier studies, these variables appear to explain part of the credit cycle. As our …