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how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …
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The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …
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When firms borrow in foreign currency but collect revenues in local currency, exchange rate changes can affect their ability to repay their debt. Using loan-level data from U.S. banks' regulatory filings, this paper studies the effect of exchange rate changes on firms’ loan payments. A 10...
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Several papers find a positive association between a bank's equity stake in a borrowing firm and lending to that firm …
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