We explore Lithuanian credit register data and two bank closures to provide a novel estimate of firms' bank …-switching costs and a novel identification of the hold-up problem. We show that when a distressed bank's closure forced firms to …' reputational concerns, a healthy bank's closure revealed no overcharging. To policy-makers, our results suggest potential benefits …

case of free riding. As the number of lending banks grows, the chance of meeting again a bank and of being punished for …

firms with strong dependence on bank financing suffer from higher increases in default risk than firms with no such … default risk. We also find that the increase in default probabilities, caused by a decrease in bank lending, is only … significant for firms with low credit quality. These findings suggest that the bank supply shock theory helps explain the …