A common assumption in the academic literature is that franchise value plays a key role in limiting bank risk …-taking. As market power is the primary source of franchise value, reduced competition in banking markets has been seen as … of market concentration do not affect bank risk-taking. However, we find a negative relationship between market power …

all loans granted in Spain. We find that during the period analyzed both worse economic and tighter monetary conditions … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

subsequent performance. Countercyclical 'dynamic' provisioning unrelated to specific loan losses was introduced in Spain in 2000 …, and modified in 2005 and 2008. The resultant bank-specific shocks to capital buffers, combined with the financial crisis … from comprehensive bank-, firm-, loan-, and loan application-level data suggest that countercyclical capital buffers help …

, which implies pro-cyclical bank capital regulation. Introduced in Spain in 2000, revised four times and tested in its …

subsequent performance. Countercyclical ‘dynamic' provisioning unrelated to specific loan losses was introduced in Spain in 2000 …, and modified in 2005 and 2008. The resultant bank-specific shocks to capital buffers, combined with the financial crisis … from comprehensive bank-, firm-, loan-, and loan application-level data suggest that countercyclical capital buffers help …

While banks may change their credit supply due to bank balance-sheet shocks (the local lending channel), firms can … estate assets on credit supply for non real-estate firms in Spain over 2000-2010. We show that firm-level equilibrium … dynamics nullify the strong local (bank-level) lending channel of securitization on credit quantity for firms with multiple …