–2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are … tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery … therefore requires both: deleveraging of banks and firms. …

across heterogeneous banks. In the model, banks‘ productivity determines their optimal strategy in oligopolistic markets …. Higher productivity gives banks higher profit margins that lower their default risk. Hence, capital requirements indirectly … aiming at highproductivity banks are less effective. They also bear a distortionary cost: Because incumbents increase …

We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that … banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced … if banks have a lower willingness to adjust loan terms. Exploiting the election of Donald Trump as an exogenous shock …

the microdata of German banks that stateowned savings banks have lent less than credit cooperatives during the COVID-19 … crisis. In particular, the weaker lending effects of state-owned banks are pronounced for long-term and nonrevolving loans …