ability of a bank to restructure the borrower's firm in the case of distress, the possibility to appropriate private benefits …

Why do banks remain passive? In a model of bank-firm relationship we study the trade-off a bank faces when having … defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm’s type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition …

We analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate … traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for … different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal …

Efficiency is considered a key factor when evaluating a bank's performance. Moreover, efficiency enhancement is an … explicit policy objective in the Single Market Directive of the European Commission. But efficiency improvements may come at … the expense of deteriorating bank profits and excessive risk-taking. Both the quantitative effects and dynamic reactions …

the financial crisis 2008-09 was significantly higher for firms with a weak bank than for comparable firms with a sound … bank. Second, non-defaulting firms with a weak bank did not have a lower return on assets during the financial crisis 2008 …-09 than comparable firms with a sound bank. Taken together, these results may indicate the presence of heterogeneous effects …