To study bank behavior, we use tail events in the history of a bank's credit losses as a new type of shock to capital … significantly lower than the sensitivity under a constant-leverage regime. To control for credit demand, we construct a synthetic …

Using detailed data of all German banks, we find that banks which have suffered heavy credit losses reduce their … assumption of constant leverage. Weakly capitalized banks grant fewer new loans than other banks. We control for credit demand …

Using detailed data of all German banks, we find that banks which have suffered heavy credit losses reduce their … assumption of constant leverage. Weakly capitalized banks grant fewer new loans than other banks. We control for credit demand …

rate risk and to credit risk are remunerated, that banks' try to stabilize the mid-term net interest margin with exposure … credit risk. …

Using a unique data set on German banks' loans to the German real economy, we investigate banks' credit risk. This data … the period 2003-2011 yields the following results: (i) Beyond the nationwide credit loss rate, industry composition, and … regional factors, the loans' maturity structure is found to drive the bank-wide loss rates in the credit portfolio. (ii) The …

Relationship lending is a common practice in credit financing all over the world, notably also in the European Union …&D-intensive firms, tend to choose a relationship lender. The same is observed for firms of high credit quality, independent of their …

Relationship lending is a common practice in credit financing all over the world, particularly in Germany. On the basis …