Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193523 
Authors: 
Year of Publication: 
2016
Series/Report no.: 
ESRB Working Paper Series No. 16
Publisher: 
European Systemic Risk Board (ESRB), European System of Financial Supervision, Frankfurt a. M.
Abstract: 
This paper analyzes the effect of bank recapitalizations on lending, funding and asset quality of European banks between 2000 and 2013. Controlling for market implied capital shortfall of banks, we find that banks that receive a sufficiently large recapitalization increase lending, attract more deposits and clean up their balance sheets. In contrast, banks that receive a small recapitalization relative to their capital shortfall reduce lending and shrink assets. These results suggest recapitalizations need to be large enough to lead to new lending.
Subjects: 
Bank recapitalization
lending
zombie banks
bank restructuring
banking crisis
JEL: 
G21
G28
Persistent Identifier of the first edition: 
ISBN: 
978-92-95081-43-7
Document Type: 
Working Paper

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