presse@iwh-halle.de
Pills or puts?
Shuo Xia
Financial Times, February 2, 2024
We study how bank competition affects commercial lending using a quantitative model.
Using matched bank-firm-level data and the 2014 depreciation of the euro, we show that exchange rate depreciations can lead to higher loan supply.
We study loan conditions when bank branches close and firms subsequently transfer to a branch of another bank in the vicinity.