We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that …

When a bank is burdened with Non Performing Loans, an underinvestment problem may arise. Banking Authorities often take … the initiative to segregate these Non Performing Loans into a Bad Bank (BB), so that the remaining part of the bank, the … Good Bank, finds it profitable to make new loans. These BBs typically involve an injection of public funds. We propose a …

an effect working via bank credit. Using a unique sample of majority-owned firms that apply for credit, we show that …

We find that stricter merger control legislation increases abnormal announcement returns of targets in bank mergers by …

We develop a novel dynamic model of banking showing that aggregate bank capital is an important determinant of bank …. Because of this financial friction, banks build equity buffers to absorb negative shocks. Aggregate bank capital determines …

contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …