This paper analyses loan pricing on short-term lines of credit with an emphasis on situations of borrower distress. Based on a unique data set on SME lending collected from major German banks, we find effective coordination among multiple bank lenders when there is borrower distress. The panel...

This paper analyzes loan pricing when there is multiple banking and borrower distress. Using a unique data set on SME lending collected from major German banks, we can instrument for effective coordination between lenders, carrying out a panel estimation. The analysis allows to distinguish...