Using a novel dataset that allows us to trace the primary bank relationships of a sample of mostly unlisted firms, we … explore which borrowers are able to benefit from foreign bank presence in emerging markets. Our results suggest that the … limits to financial integration are less tight than the static picture of bank-firm relationships implies. Even though …

competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry … specialization. We empirically investigate the impact of interbank competition on bank branch orientation and specialization. We … bank branches facing stiff local competition engage considerably more in relationship-based lending and specialize somewhat …

foreign bank lending on firm growth and financing. Foreign lending stimulates growth in firm sales, assets, and leverage, but … the effect is dampened for small firms. We also find that the most connected businesses benefit least from foreign bank …

. We investigate theoretically and empirically how bank organization shapes banking competition. Our theoretical model …Recent theoretical models argue that a bank’s organizational structure reflects its lending technology. A … hierarchically organized bank will employ mainly hard information, whereas a decentralized bank will rely more on soft information …

the cross-section of banks; and, the negative German loading reflects funding risk (flight away from bank funding to … various proxies for bank short-term debt. Large banks and banks with low Tier 1 ratios and high risk-weighted assets had …” – greater exposure of domestic banks to its sovereign’s bonds – which is partly explained by the European Central Bank funding …

In this paper, we introduce a new requirement for bank capital: banking-on-the-average rules. Under these rules a bank … on other banks. In addition, banking-on-the-average rules ensure the build-up of bank equity capital in booms and thus …

) assets are bank-specific. We show that when the outside options of needy banks are weak, surplus banks may strategically … under-provide lending, thereby inducing inefficient sales of bank-specific assets. A central bank can ameliorate this …

Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …