We identify ever-greening motivated by loan officer incentives. We devise a novel zombie lending measure in a setting dominated by non-verifiable information. We identify loans that are renewed quickly after repayment of the previous loan, where the same officer is in charge during the issuance...

We examine the Indian bank asset quality review, which doubled the declared loan delinquency rate. Relative economic stability during the exercise and the absence of a capital backstop together make it unique. We find that the expected reduction in information asymmetry does not automatically...