Using panel firm-level data, this paper analyses the main factors affecting firms' access to bank credit in eleven Euro Area countries over the period 2014-2016. We focus on firm's loan demand behaviour and on bank's actual credit granting decision, using alternative measures of credit...

In Europe, banks gradually roll-out the internal ratings-based approach (IRBA) across credit risk exposures. My findings imply a non-linear, U-shaped relation between the partial use of internal models and risk-weight densities: Banks firstly implement those portfolios that are most rewarding in...

The emerging Europe has been hardest hit by the surge in the non-performing loans (NPLs) in the aftermath of the global financial turbulence and the crisis-induced recession. The surge in the NPLs generated a severe banking distress, and left a legacy of a debt overhang that dramatically...

This study aims to analyse the sensitivity of capital requirements to changes in risk parameters (PD, LGD and M) by creating a "model bank" with a portfolio mirroring the average asset composition of internationally active large banks, as well as locally oriented smaller institutions...

The paper shows that mispriced deposit insurance and capital regulation were of second order importance in determining the capital structure of large U.S. and European banks during 1991 to 2004. Instead, standard cross-sectional determinants of non-financial firms' leverage carry over to banks,...