In this paper we use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring … ability. For these banks, our tests reveal that banks' credit ratings indeed include valuable private information from …

In this paper, the authors use credit rating data from two Swedish banks to elicit evidence on banks' loan monitoring … ability. They test the banks' ability to forecast credit bureau ratings, and vice versa, and show that bank ratings are able … that risk analysis by banks or regulators should be based on both internal bank ratings and public ratings. They also …

In this paper, we use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring … ability. For these banks, our tests reveal that banks' internal credit ratings indeed include valuable private information … from monitoring, as theory suggests. Banks' private information increases with the size of loans …

Larger firms (by sales or employment) have higher leverage. This pattern is explained using a model in which firms … higher leverage. A lower risk-free rate benefits bigger firms more as they are able to lever more and existing firms buy more …

projections as an exogenous shock to banks and analyze how this shock is transmitted to consumer credit markets. First, we … document that banks in the 90th percentile of the capital gap reduce their new supply of risky credit by 13 percent compared … these banks find alternative ways to remain competitive and attract customers by lowering interest rates and offering more …