We explore whether corporate tax enforcement can affect bank lending. Specifically, we hypothesize that tax enforcement efforts aimed at small and midsized enterprises (SME) can improve their information environments, which in turn could lead to increased bank commercial lending. Exploiting the...

We explore whether corporate tax enforcement can affect bank lending. Specifically, we hypothesize that tax enforcement efforts aimed at small and midsized enterprises (SME) can improve their information environments, which in turn could lead to increased bank commercial lending. Exploiting the...

In this paper, we revisit the question of the banks' ability to shift corporate income taxes to customers by increasing their net interest margins. We estimate tax incidence for 1,411 European commercial banks over the period 1992-2008. Unlike earlier studies which suffer from endogeneity...