risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

decrease in average bank net interest margins, an increase in average bank gross loan ratios and a decrease in average bank … insolvency risk. We find limited support for the role of capital-openness however. For bank net interest margins, we find that … trade-openness, but not independently. For bank gross loan ratios and risk-taking, we find that higher capital …

In this paper we relate a bank’s choice between retail and wholesale liabilities to real economic uncertainty and the … resulting volatility of bank loan volumes. We argue that since the volume of retail deposits is slow and costly to adjust to … shocks in the volume of bank assets, banks facing more intense uncertainty and more volatile loan demand tend to employ more …

This paper investigates whether monitoring by bank lenders affects CEO incentives of borrowing firms. We find that an … increase in bank monitoring incentives significantly reduce the sensitivity of CEO wealth to stock return volatility (Vega … CEO incentives to mitigate the risk-shifting incentives of firm managers …

The paper presents the first empirical study of the relation between bank loan volume volatility and bank retail and …

their lending to real sector firms.Our agent-based model considers five types of agents: banks, depositors, the Central Bank … players' behaviors are used as a reference to understand how these main agents respond strategically to different incentives … fundamental role in banks' liquidity management; (3) banks avoid borrowing resources from the Central Bank; (4) when the monetary …

Bank, firms, and the clearinghouse. While banks and depositors are bounded-rational agents with adaptive strategies, the … incentives and situations. Some of our findings recover stylized facts available in the literature: (1) when the monetary policy … fundamental role in banks' liquidity management; (3) banks avoid borrowing resources from the Central Bank; (4) when the monetary …

This paper investigates how precautionary trading behavior of fund managers induced by a higher junior fee component in … from Collateralized Loan Obligation (CLO) funds, we find that fund managers with a higher ratio of subordinate fee to total … fees are more likely to sell downgraded loans. Fund managers exhibit such precautionary trading behavior even when …