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This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan … contracts in Belgium. We analyse the effects of bank mergers on the probability of borrowers maintaining their lending … relationships and on their ability to continue tapping bank credit. The environment reflects a number of interesting features: high …
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This paper analyzes the effects of bank mergers on bank-firm relationships. Using matched bank-firm level data, I find … positive effects of mergers for borrowers that continue the lending relationship with the consolidated bank. On average …
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Regulation and capital constraints may force banks and collateralized loan obligations (CLOs) to sell deteriorating loans, potentially hampering renegotiation and amplifying the initial negative shock to the borrower. We show that banks and CLOs sell downgraded loans to mutual funds and hedge...
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