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asymmetry diminishes) and how they rely both on the arranger's reputation and their own repeat experience with the borrower. …The unique structure of syndicated lending results in information asymmetries within the lending syndicate between … junior and senior banks rely on their own and each other's information sets in lending syndicates. In particular, we look at …
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In this paper, we exploit a natural experiment in which thrifts in several states witnessed an exogenous reduction in supervisory attention to assess the effect of supervision on financial institutions' willingness to take risk. We show that the affected institutions took on much more risk than...
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This paper provides an overview of stress-testing methodologies in Europe, with a focus on the advancements made by the European Central Bank's Financial Stability Committee Working Group on Stress Testing (WGST). Over a four-year period, the WGST played a pivotal role in refining stress-testing...
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