In spite of growing regulatory pressure in most developed economies, “zombie lending” remains a widespread practice by banks. In this paper we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections...

We review existing empirical research on the design and impact of regulation in the banking sector. The impact of each individual piece of regulation may inexorably depend on the set of regulations already in place, the characteristics of the banks involved (from their size or ownership...

Does bank experience reduce moral hazard in credit markets? Using U.S. corporate loan-level data, we find that, while experience with borrowers and co-lenders reinforces banks’ monitoring incentives, sector experience dilutes them, calling for larger involvement in lending syndicates. In...