-performing loans (NPLs) on bank cost of capital, credit and liquidity creation in the Eurozone. Empirical results confirm the model …-term. Moreover, the increased cost of capital reduces credit and liquidity creation, and the more so the less capitalized is the bank …

estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks … bank asset losses, of government support for banks, and other fiscal stimulus measures, in the EA. Our results suggest that …

We study the functioning of secured and unsecured inter-bank markets in the presence of credit risk. The model …

market data on bank stocks in daily frequency. Considering debt service payments with different maturities this term …

heuristic approaches which capture the deviation of a bank's portfolio from a specified benchmark. Conceivable benchmarks are … indicate contradicting results on the individual bank level. Since distance measures are more appealing from a theoretical …, may be misleading. We further find that, despite these differences on the individual bank level, both approaches reveal …

This paper presents the results of an analysis of data on individual bank loans of non-financial corporations in the … single bank, whereas less creditworthy firms and firms in cyclical industries tend to borrow from more than one bank. The … shows that the level of credit risk at bank level decreases in line with the extent to which firms applying single …

Ongoing financial innovation and greater information availability increase the tradability of bank assets and reduce … banks' dependence on individual bank managers as private information in the lending process declines. In this paper we argue … bank managers and shareholders becomes less severe. Consequently, banks' capital structure needs to be less concerned with …