debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are …

forbearance on distressed banks during the crisis, there is less restructuring in the real sector and the banking sector remains … forbearance is greater for state-chartered banks and in regions with weaker banking competition and more independent banks, while … recapitalisation of distressed banks through TARP does not facilitate cleansing. …

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are …

This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … competitor banks for any given bank, and analyze the impact of this variable on banks’ risk-taking behavior, using a large sample … of banks from OECD countries. Our results suggest that government guarantees strongly increase the risk-taking of …

In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of … government support. The rating changes are not a reflection of any changes in the respective banks' credit fundamentals. We use … banks with higher bail out probabilities tend to increase their risk taking less compared to banks that were ex ante …

In the wake of the recent financial crisis, many governments extended public guarantees to banks. We take advantage of … a natural experiment, in which long-standing public guarantees were removed for a set of German banks following a …