Foundations and Trends® in Finance

Volume 8, issue 2

Long Run Relationships in Banking

This monograph surveys the effects of long-run relationships in banking between corporate borrowers and lenders. The first part of the survey analyzes econometric issues in the measurement of the costs and benefits of such relationships. In particular, we analyze potential issues with commonly used
Volume 8, issue 1

Should Banks' Stress Test Results be Disclosed? An Analysis of the Costs and Benefits

Stress tests have become an important component of the supervisory toolkit. However, the extent of disclosure of stress-test results remains controversial. We argue that while stress tests uncover unique information to outsiders — because banks operate in second--best environments with multiple impe...