This paper examines the ramification of government capital injections into financially distressed banks during the 1997 … struggling "zombie" firms. The empirical results suggest that banks, post-injection, increased lending to both high …

stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may … make banks internalizing such costs and improves the efficiency of intermediation. …

This paper analyzes the influence of market discipline on the risk-taking incentives of banks. It is shown that market … discipline reduces risk if banks can credibly commit to a given level of risk before the interest rate on deposits is set. If … in risk. The reason is that rational depositors anticipate the banks' behavior and therefore ask for a higher risk …

evidence on Swiss banks to assess both benefits and costs. The analysis yields two main conclusions. The long-run economic …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …

concentration, the industrial policy of the government, and the banks' involvement in the financing of the non-financial economy. We … see a hierarchical multi-tier banking system headed by a few core state-controlled banks. These combine commercial … influence on the banks' lending decisions and market behavior. We argue that the Chinese and Russian banking provide empirical …