the lens of a dynamic general equilibrium model with oligopolistic banks and heterogeneous firms. The lack of competition … allows banks to price discriminate and charge firm-specific markups in excess of default premia. In turn, the cross …-sectional dispersion of markups amplifies the impact of macroeconomic shocks. During a crisis, banks exploit their market power to extract …

three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks' stability …This paper addresses the desirability of competition in banking industry. In a model where banks compete on both … deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate …

. Firms' benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations …

creates money by lending to banks, and banks on-lend the proceeds to the economy. The proposed model would allow for deposits … at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money … to be taken off the balance sheet of banks and into the balance sheet of the central bank, thereby removing significant …

that banks require collateral from observably riskier borrowers (lender selection effect), while lower risk premiums arise … for residential real estate collateral and that the risk shifting effect is important for pledged deposits and bank …

, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community … banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business …

acquiring banks value profitable, high-growth, and low-risk targets. We also find that the strength of bank regulation and … regimes and stronger deposit insurance schemes lower the takeover premiums paid by acquiring banks. This result, presumably in … to extract benefits from regulators either by paying a premium for deals in less regulated regimes or becoming too big to …