We employ interest rates and expected loss probabilities from the 2021 EBA Stress Test dataset and euro area credit … registries to examine whether the risk-return relationship holds in banking. After controlling for bank, loan, and debtor …-subsidization effect of credit risk. …

provide evidence that instead, the corporate bond market is central to firms' access to liquidity, crowding out bank loans … even when the crisis did not originate in the banking sector. We first show that, contrary to good times, bond issuance is … "high-yield" firms, prefer issuing bonds to borrowing from their bank. Over 40% of bond issuers leave their credit line …

In the traditional banking model, loans play a dominant role in banks’ operations. Loan portfolio quality is the main … credit portfolio quality is the share of non-performing loans to the total credit portfolio. The consequences of an increased … amount of non-performing loans may not only reduce the financial results, but also reduce the capital and increase the risk …

The funding mix of European firms is weighted heavily towards bank credit, which underscores the importance of … with direct implications for profitability, hampering banks ability to supply credit and lower loan pricing in response to … excess of non-performing loans over impaired loans. We show that it played a significant role in the fragmentation of euro …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …

the importance of bank behavior for distinguishing between good and bad credit growth. We find that loans originated near … real estate loans. Furthermore, we estimate the relative importance of idiosyncratic and systematic factors and emphasize … the peak of the cycle are riskier, confirming the pro-cyclical nature of the market. As opposed to loans originated during …

inclusion of a broad set of loan-level controls and fixed effects. We also find that the spread between high and low credit …