local bank. We evaluate the impact of a large number of branch closures on firm operations, wages and employment, and …, employing both two-way fixed effects and Callaway-Sant'Anna estimators. Our study finds that bank branch closures result in a … agricultural firms are found to be the most vulnerable. Our study highlights the importance of physical bank branches that provide …

, which is the risk that a new technology has negative spillovers on the value of a bank's legacy loan portfolio. Using both … overhang. These results hold for two distinct measures of asset overhang and using bank mergers as a source of exogenous … variation in bank specialization. We further show that these heterogeneous effects arise through financial contracting. Overall …