free riding. As the number of banks grows, the chance of re-encountering a bank and of being punished for free riding … develop a multistage game in which banks come across each other frequently, allowing them to threaten punishment in case of … probability increases with the number of banks up to a threshold - around three banks - beyond which coordination problems prevail …

banks and nonbanks respond differentially to changes in macroeconomic conditions, with bank credit more sensitive to …" approach to study how lender composition and willingness to provide credit affect the relationship between credit expansions … and real activity. A key advantage of jointly modeling the demand for and supply of credit is the ability to evaluate …

credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor … banks, the distribution of lending shares, and the severity of the distress shock. …

examination of credit files of five leading German banks, thus relying on information actually used in the process of bank credit … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the … bank's own assessment of its housebank status serves to identify information-intensive relationships. Additionally, we used …

We studied information and interaction processes in six lending relationships between a universal bank and medium sized … firms. The study is based on the credit files of the respective firms. If no problems occur in these lending relationships …, bank monitoring is based mainly on cheap, retrospective and internal data. In case of distress, more expensive, prospective …

the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade …

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 … more, which suggests that information asymmetries significantly contribute to switching costs. In line with banks …

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm … bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to … investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …