Theoretically, bank's loan monitoring activity hinges critically on its capitalisation. To proxy for monitoring … governance of the firm. Exploiting granular bank-firm relationships observed in the syndicated loan market, we document …

We quantify the differences between market and regulatory assessments of bank portfolio risk, showing that larger … 4.1% following a one standard deviation increase in our measure for bank asset-risk differences. This amounts to an … is information asymmetry between investors and bank regulators …

, bank monitoring is based mainly on cheap, retrospective and internal data. In case of distress, more expensive, prospective …We studied information and interaction processes in six lending relationships between a universal bank and medium sized … firm's investments might leave the bank in a very strong bargaining position and distort investment incentives. Therefore …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …

failures neglect the ordinal nature of bank distress. Exploiting the distress database of the Deutsche Bundesbank we … distinguish four different distress events that banks experience. Only the worst entails a bank to exit the market. Weaker orders …Outright bank failures without prior indication of financial instability are very rare. Supervisory authorities monitor …

We explore Lithuanian credit register data and two bank closures to provide a novel estimate of firms' bank …-switching costs and a novel identification of the hold-up problem. We show that when a distressed bank's closure forced firms to …' reputational concerns, a healthy bank's closure revealed no overcharging. To policy-makers, our results suggest potential benefits …

credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data …