Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns … as to their effect on bank risk-taking incentives. In a model of financial fragility that incorporates bank capital and a … bank incentive problem, we show that loan guarantees reduce depositor runs and improve bank underwriting standards, except …

This paper evaluates the impact of the March 2020 European Central Bank recommendation that banks do not pay dividends … or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during …

interest rate policy period, change in banks' competitive behaviour affected the bank lending channel and discouraged banks …