Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7356555 | Journal of Banking & Finance | 2018 | 40 Pages |
Abstract
Enforcement actions (sanctions) aim to penalize guilty companies and provide examples to other companies that bad behavior will be penalized. A handful of papers analyze the consequences of sanctions in banking for sanctioned companies, while no papers have investigated the spillover effects on non-sanctioned banks. Focusing on credit-related sanctions, we show the existence of a spillover effect: non-sanctioned banks behave similar to sanctioned banks, depending on their degree of similarity, offloading problematic loans and reducing their lending activity.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Stefano Caiazza, Matteo Cotugno, Franco Fiordelisi, Valeria Stefanelli,