The research shows that banking relationships are important to lending. However, few studies focus on the banking relationships in syndicated loans, although these loans have became a major source of financing. The last financial crisis clearly shows the impacts of credit rationing and...

This paper presents a theoretical model of how banks set their credit standards. It examines how a monopoly bank sets its monitoring intensity in order to manage credit risk when it makes long duration loans to borrowers who have private knowledge of their project's stochastic profitability. In...

The paper studies daily interbank rate determination and volatility in the Dominican Republic during a major banking crisis. The investigation uses a novel, automatic, general-to-specific technology (PcGets) to reduce a baseline (mean) specification linking interbank rates and aggregate banking...

The Canadian system of housing finance proved to be resilient and efficient during the global financial crisis and its aftermath. The system's effectiveness is the result of a rigorous prudential regulatory and supervisory regime coupled with targeted government guarantees of mortgage insurance...

This paper describes the Danish mortgage system by comparing it with the UK mortgage system. The Danish mortgage system has attracted attention in the literature on the design of mortgage systems. It is a type of narrow banking model where mortgage loans are financed by specialised institutions...

The recent crisis has underlined the importance of the interaction of financial innovations and the housing market. We consider five major innovations relevant to housing finance. These are (i) mortgages; (ii) specialised housing finance institutions; (iii) government interventions in housing...

I analyze loan loss reserves during the Global Financial Crises in the late 2000s. I develop a regression model that separates the loan loss reserve account into discretionary and nondiscretionary components. The nondiscretionary (expected) component is based on current, past due, restructured,...

Using detailed employment data on firm age and size, I show that the presence of local finance improves job retention and creation at young and small firms. I use natural disasters and regulatory guidance to disentangle the effects of credit supply and demand. I find that an additional standard...

The financial services sectors of Romania and Estonia moved towards privatization in sharply contrasting manners. For a long time Romania's enthusiasm for its 1998 promise to the IMF to privatize its leading banks was only a commitment on paper; few steps were made towards its fulfillment. By...

This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and fiscal distress, and inquires how the regulation of...