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Abstract:

The dissertation aims to contribute to the discussion and research on the importance of banks, which can be considered as the most relevant financial intermediaries in today’s financial markets. The first chapter of the dissertation reviews the growing empirical literature on banking regulation and its effects on the banking sector and the real economy. The second chapter assesses the empirical work on the relevance of banks in the monetary transmission mechanism and the challenges to the banking sector that have arisen with the onset of the financial crisis. The third chapter determines how shocks to bank loan supply affect the real outcomes of firms and risk-taking by banks, by broadening the scope of analysis to firms borrowing from a single bank. The final chapter of the dissertation establishes how bank debt and venture capital influence growth and investment outcomes of young firms.