Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the … study aims to examine whether the capital injections primarily benefited high-productivity firms or were misallocated to … struggling "zombie" firms. The empirical results suggest that banks, post-injection, increased lending to both high-productivity …

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …We provide evidence that a weak banking sector has contributed to low productivity growth following the European … the resulting increase in factor misallocation accounts for 20% of the decline in productivity in Portugal in 2012. …