We investigate the relationship between borrower risk and loan maturity in small business lending. Using a rich dataset on new loans extended to German firms, we find a robust, significantly positive, monotonic…

States often grant banks guarantees to prevent the collapse of the financial system. However, these guarantees must be withdrawn again as quickly as possible. The potential implications of withdrawing guarantees…

This paper analyzes the importance of discretion in bank lending decisions. We use a unique dataset of more than 1 million loan applications to customers of German savings banks and can observe accept and reject…