We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … underlie our structural model, we can quantify the impact capital regulation and other government interventions have on bank …

We draw on stylized facts from the finance literature to build a model where altering the relative costs of bank and … both the largest and smallest firms. In contrast, reducing the frictions involved in bank lending promotes the expansion of …---promoting bond issuance causes exit while cheaper bank credit induces entry. When reducing transactions costs in one market, the …

This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans …

paper investigates whether bank ties in Japan were costly for mature and healthy firms in the 1980's and 1990's, and whether … banks continued to facilitate investment once non-bank financing options became available. Using the explicit bond issuing … much larger for main bank client firms, once bond market access is controlled for. This result, coupled with results on the …

We examine the impact of bank supervision on the financing obstacles faced by almost 5,000 corporations across 49 …. Finally, we find that bank supervisory agencies that force accurate information disclosure by banks and enhance private …

present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets … selection. Adverse selection lowers bank profit margins which slows both the internal growth of equity and equity injections …

This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt …