This paper provides further insights into the nature of relationship lending by analyzing the link between relationship lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the examination of credit files of five leading German...

This article presents a systematic consideration of how administrative law doctrines apply to banking supervision, an unusual form of administrative practice. First, it describes the rationales for, and process of, bank supervision. Key here is an explanation of why financial regulation that is...

We show that multi-bank loan pools improve the risk-return profile of banks' loan business. Banks write simple contracts on the proceeds from pooled loan portfolios, taking into account the free-rider problems in joint loan production. Thus, banks benefit greatly from diversifying credit risk...