failures neglect the ordinal nature of bank distress. Exploiting the distress database of the Deutsche Bundesbank we … distinguish four different distress events that banks experience. Only the worst entails a bank to exit the market. Weaker orders …Outright bank failures without prior indication of financial instability are very rare. Supervisory authorities monitor …

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 …

merger related effects on small business lending in Germany from a bank-level perspective. Furthermore, we estimate small …

merger related effects on small business lending in Germany from a bank-level perspective. Furthermore, we estimate small … for panel data as proposed by Arellano and Bond (1991). -- Bank mergers ; small business lending …

distress. Relative to outside loans in distress, relationship loans in distress have lower maturity. The fraction of bank … borrower distress. Relationship and outside loans have similar interest rates during distress, and even two years prior to … lending given by relationship banks reduces during borrower distress. Overall, borrowers in distress do not derive benefits …

It is well recognized that relationship banking helps to relieve the credit constraints faced by SMEs to access bank … social capital factors, and the styleof the bank-borrowerrelationship. Along with bank, firm, and market factors, trust …

We explore Lithuanian credit register data and two bank closures to provide a novel estimate of firms' bank …-switching costs and a novel identification of the hold-up problem. We show that when a distressed bank's closure forced firms to …' reputational concerns, a healthy bank's closure revealed no overcharging. To policy-makers, our results suggest potential benefits …