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Regulation and capital constraints may force banks and collateralized loan obligations (CLOs) to sell deteriorating loans, potentially hampering renegotiation and amplifying the initial negative shock to the borrower. We show that banks and CLOs sell downgraded loans to mutual funds and hedge...
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This paper explores the empirical relationship between bank competition, bank concentration, and the emergence of … emerge in economies characterized by a high degree of bank concentration. The authors argue that the reason for this finding … contrast, the data show no significant relationship between bank competition or concentration and the emergence of a public …
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This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan … contracts in Belgium. We analyse the effects of bank mergers on the probability of borrowers maintaining their lending … relationships and on their ability to continue tapping bank credit. The environment reflects a number of interesting features: high …
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