case of free riding. As the number of lending banks grows, the chance of meeting again a bank and of being punished for …

to other bank stakeholders. It therefore provides incentives for increases in balance sheet size and risk taking. This …

initial share of bond- relative to bank-based finance; this effect weakens, and may even reverse, in economies with a low … when bank lending contracts. …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …

because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …

banks and nonbanks respond differentially to changes in macroeconomic conditions, with bank credit more sensitive to …

Banks produce short-term debt for transactions and storing value. The value of bank money must not vary over time so … information about the bank's loans. To produce safe liquidity banks choose loans with high such costs. Capital markets cannot … produce substitutes for bank money because they involve information revelation. They produce risky liquidity. This trade …

types – in particular Autonomy and Embeddedness – and the corporate debt choice of either bank or bond financing. We derive … show that firms in Autonomy cultures tend toward bank finance, whereas firms in Embeddedness cultures show a preference for …

examination of credit files of five leading German banks, thus relying on information actually used in the process of bank credit … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the … bank's own assessment of its housebank status serves to identify information-intensive relationships. Additionally, we used …

In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade … the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …