SMEs than big banks. In fact, drawing on an ethnographic study at one German savings bank and one big bank, this paper … shows that the regional savings bank does not always reach credit decisions at a lower distance. However, at the moment when … soft information becomes crucial the big bank decides at a high distance, which is likely to oppress the usage of soft …

Small and medium-sized firms often obtain capital via a mixture of relationship and arm's-length bank lending. We show … that such heterogeneous multiple bank financing leads to a lower probability of ineefficient credit foreclosure than both … monopoly relationship lending and homogeneous multiple bank financing. Yet, in order to reduce hold-up and coordination …

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 …

The effects of bank competition and institutions on credit markets are usually studied separately although both factors … are interdependent. We study the effect of bank competition on the choice of contracts (screening versus collateralized … effects of bank competition on collateralization, access to finance, and social welfare depend on the institutional …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

uninformed bank needs an additional screening device. VC fulfils that role. …

An entrepreneur chooses a relationship bank or market finance. The advantage of bank finance is that the quality of the … that the bank continues inefficient projects, i.e., zombie lending occurs. In the short run - for a given contract - a drop … in the market interest rate increases zombification. The bank adapts the contract to this drop in the long run, and …