This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …

bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …

' abilities to screen borrowers, the market for loans becomes segmented and a self-competition mechanism arises. When … heterogeneity increases, the intensive and extensive margins have opposite effects. Bank informational rents unambiguously decrease … welfare and distort effort incentives. But the bank most efficient at screening expands its market share by competing against …

between these vehicles and lead banks. CLOs that have a relationship with the lead bank of the renegotiated loan are strong … fund not only their portion of the loan increase, but also the portion that was supposed to be funded by the lead bank. Our … findings highlight the previously unrecognized role of the growing presence of non-bank lenders in corporate lending. …