Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can emerge, depending on the magnitude of liquidity risks....

We classify a large sample of banks according to the geographic diversification of their international syndicated loan portfolio. Our results show that diversified banks maintain higher loan supply during banking crises in borrower countries. The positive loan supply effects lead to higher...

We classify a large sample of banks according to the geographic diversification of their international syndicated loan portfolio. Our results show that diversified banks maintain higher loan supply during banking crises in borrower countries. The positive loan supply effects lead to higher...

Investor George Soros ist der Meinung, dass die aktuelle, durch das Platzen der Immobilienblase in den USA ausgelöste Finanzkrise das Ende des Zeitalters der Kreditexpansion markiert. Diese gegenwärtige Krise ist weit gravierender als alle, die seit dem Ende des Zweiten Weltkriegs auftraten....