Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of financial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

We explore the behavior of supervisors when a centralized agency has full power over all decisions regarding banks, but …-taking by regulated banks. Yet, a 'tougher' central supervisor may increase regulatory standards. Thus, the net effect of … centralization on bank risk taking depends on the balance of these two effects …

and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit …. The model predicts a greater use of multiple-bank lending when banks are small relative to investment projects, firms are …This paper analyzes banks choice between lending to firms individually and sharing lending with other banks, when firms …

) around the globe, with the focus on alternative finance—financing from all the non-market, non-bank external sources. We … argue that while traditional financing channels, including financial markets and banks, provide significant sources of funds …-growing economies. We compare market and bank finance with alternative finance, along with the supporting mechanisms such as legal and …

We analyse micro and macro drivers of coverage ratios in a cross–country sample of euro area banks. Among the former … as with deeper NPL secondary markets. Finally, we find evidence of peer imitation behaviour, as banks with below country … average coverage ratios increase coverage ratios to catch up with their peers. As for the prevalent mechanism, banks tend to …