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 … help reduce the cost of financing. We further explore firm and bank heterogeneity and confirm cost of financing and …

whether government subsidies to firms affect quantity and quality of bank lending. We combine recipient firms under the … to firms are determined at the EU level. Therefore, we use it to identify bank outcomes. Banks with relationships to more … subsidized firms exhibit higher lending volumes without any significant differences in bank stability. Subsidized firms, in turn …

We study the impact of increasingly negative central bank policy rates on banks' propensity to become undercapitalized …

. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank … data complementing existing evidence that financial instability is highest when bank control is capturedby small lobbies. …

We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …