presse@iwh-halle.de
Pills or puts?
Shuo Xia
Financial Times, February 2, 2024
We investigate whether pre-publication revisions of bank financial statements contain information about financial stability.
This paper studies how banks compete amid digital disruption and the resulting distributional effect across consumers. Digital disruption increases the geographic coverage of banking services, bringing new entrants to local markets.
A bank in poor financial shape may have incentives to maintain a lending relationship with a "zombie" firm in order to avoid or delay the recognition of credit losses.
We use a quasi-natural experiment to identify the effects of supervision on bank behavior. Under the decentralized structure of U.S. bank supervision, banks in the same geographic area may be supervised by different regulatory offices.