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This paper presents evidence that personal relationships between corporate borrowers and bank loan officers improve the outcomes of loan renegotiation. Analyzing a bank reorganization in Greece in the mid-2010s, I find that firms that experience an exogenous interruption in their loan officer...
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We investigate how financial contracting interacts with lending channel effects by tracing the anatomy of a credit …-lending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing …
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