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.
Lingua originale | English |
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pagine (da-a) | 146-159 |
Numero di pagine | 14 |
Rivista | JOURNAL OF BANKING & FINANCE |
Volume | 91 |
DOI | |
Stato di pubblicazione | Pubblicato - 2018 |
Keywords
- Banking
- Credit
- Enforcement action
- Spillover effect