‘lemons’ problem is severe, it is optimal to establish a relationship with more than one bank in spite of higher transaction … concludes with a comparison of bank-firm relationships in Italy and the United States, characterized respectively by multiple …

driving asset prices to ‘overshoot’ equilibrium when an asset bubble bursts - threatening widespread insolvency and what …

bankrupt firm’s main creditor (a bank) to influence the auction outcome. Rules prevent the bank from bidding directly. However …, the bank often finances a bidder in the auction, relaxing liquidity constraints. We show that the optimal bid strategy for … a bank-bidder coalition mimics the monopolist sales price. In the region where the bank’s debt is impaired, this optimal …

In the recent theoretical literature on lending risk, the common pool problem in multi-bank relationships has been … credit-fie information on distressed lending relationships in Germany. In particular, it includes information on bank pools … bank pools increases the probability of workout success and that coordination costs are positively related to pool size. We …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …