Working Papers
Working Papers
SFI Research Paper Series N23-66
Examines how U.S. banks adjust lending to mitigate transition risk exposures. Banks favor lending to low emitters but continue lending to high emitters.
Establishes that state-owned banks increase lending to financially weak `zombie' firms to avert major job losses prior to elections.
Documents that (especially weaker) subsidiaries of banking groups subject to increased group-level capital requirements reduce RWAs and credit supply more than parents do. Suggests that affiliation to multinational banking group does not necessarily provide stability to subsidiaries.