Favara, Giovanni; Minoiu, Camelia; Pérez, Ander - 2024
We show that U.S. banks do not engage in zombie lending to firms of deteriorating profitability, irrespective of … loans to these firms. We establish these results using supervisory data on firmbank relationships, syndicated lending data … from banks to nonbanks, zombie firms file for bankruptcy at an elevated rate, suggesting that nonbanks' zombie lending does …