Blattner, Laura; Farinha, Luísa A.; Rebelo, Francisco - 2019
natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by … cutting back on lending but also by reallocating credit to firms in financial distress with prior underreported loan loss … provisioning. We develop a method to detect when banks delay loss reporting using detailed loan-level data. We then show that the …