When do foreign banks have an advantage operating abroad and when not? Studying the performance of foreign banks in a large number of countries between 1999 and 2006, we find that this crucially depends on a number of factors. Specifically, foreign banks tend to perform better compared to...

Do foreign banks have an advantage operating abroad? The existing literature has come up with different answers. Studying the performance of foreign banks relative to domestic banks in a large number of countries between 1999 and 2006, we find that the answer importantly depends on a number of...

We examine the strategic reaction of banks to the current global financial crisis. In particular, we test whether banks predominantly react by diversifying their loan portfolio or by stepping up their screening and monitoring. To this end we analyze information on nearly 17,000 syndicated loans...

We examine whether banks have systematically stepped up their screening and monitoring efforts during the current global financial crisis. To this end we analyze nearly 17,000 syndicated loans to private borrowers in 60 countries over the period 2005-2008. We find that during the crisis...

We examine whether banks have systematically stepped up their screening and monitoring efforts during the current global financial crisis. To this end we analyze nearly 17,000 syndicated loans to private borrowers in 60 countries over the period 2005-2008. We find that during the crisis...

We examine whether the global financial crisis has prompted banks to tighten lending standards. By analyzing nearly 31,000 syndicated loans to private borrowers in 65 countries over the period 2005-2009, we find that banks not only cut lending during a crisis but also increase their screening...

We examine whether the global financial crisis has prompted banks to take corrective action with regard to their screening and monitoring. By analyzing almost 15,000 syndicated loans to private borrowers across 65 countries over the period 2005-2009, we find that banks stepped up their screening...

Statistics show that the sale of goods on credit is widespread among firms even when they are financially constrained and thus face relatively high costs in providing trade credit. A possible explanation for this is the use of trade credit as a competitiveness tool. By analyzing both the impact...

Statistics show that the sale of goods on credit is widespread among firms even when they are capital constrained and thus face relatively high costs in providing trade credit. This study provides an explanation for this by arguing that customers that possess strong market power are able to...

After Lehman Brothers filed for bankruptcy in September 2008, cross-border bank lending contracted sharply. To explain the severity and variation in this contraction, we analyze detailed data on cross-border syndicated lending by 75 banks to 59 countries. We find that banks that had to write...