I develop a banking model with monopolistic competition to analyze the effect of reserve rate policy on bank insolvency … bank default. The policy rate has an impact through two separate effects: The direct effect increases default probability …

financial resources/constraints related to deposits and loans in a commercial bank. Within a comprehensive and integrated … framework, we develop valuation and risk models for all financial products on the bank's balance sheet. Our proposed methodology … the bank's balance sheet. This new perspective provides a more accurate and consistent assessment of financial risks …

Asset recovery rate is a key factor for credit investors. This study explores the determinants of bank asset recovery …

bank's financial condition deteriorates, depositors have an incentive to withdraw their funds, and corporations will find … over the last two decades to a deterioration in the performance of their bank. We find that during recessions, in … to borrower-, bank-, and credit-line-specific controls as well as bank-fixed effects, show that banks' provision of …

episodes of bank specialization. We use the banks’ real loan allocation worldwide instead of the in-sample data to compute a … bank specialization. We find that firms borrowing from banks with high specialization levels incur lower bank loan spreads …'s sector is the same as its banks' specialized sector. However, this rent would transfer to a discount once the bank is highly …

This study examines the relation of bank loan terms like interest rates, collateral, and lines of credit to borrower … discovered as important factors. The results show that riskier borrowers pay higher loan rate premiums and rely more on bank … was no evidence for an appropriate adjustment of loan terms to rating changes. But bank market power represented by a …