Article ID Journal Published Year Pages File Type
7356555 Journal of Banking & Finance 2018 40 Pages PDF
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
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