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Do we want these two to tango?: on zombie firms and stressed banks in Europe
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| Authors and Corporations: | , , , |
|---|---|
| Title: | Do we want these two to tango?: on zombie firms and stressed banks in Europe/ Manuela Storz, Michael Koetter, Ralph Setzer, Andreas Westphal |
| Type of Resource: | E-Book |
| Language: | English |
| published: |
Frankfurt am Main, Germany
European Central Bank
[2017]
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| Series: |
Europäische Zentralbank: Working paper series ; no 2104 (October 2017)
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| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Abstract: | We show that the speed and type of corporate deleveraging depends on the interaction between corporate and financial sector health. Based on granular bank-firm data pertaining to small and medium-sized enterprises (SME) from five stressed and two non-stressed euro area economies, we show that "zombie" firms generally continued to lever up during the 2010-2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery therefore requires both: deleveraging of banks and firms. |
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| Physical Description: | 1 Online-Ressource (circa 49 Seiten); Illustrationen |
| ISBN: |
9789289928267
9289928263 |
| DOI: | 10.2866/020370 |