This article surveys the theory on zombie lending incentives and the consequences of
zombie lending for the real economy. It also offers a historical perspective by reviewing the …

We show that “zombie credit”—subsidized credit to nonviable firms—has a disinflationary
effect. By keeping these firms afloat, zombie credit creates excess aggregate supply, thereby …

We build a comprehensive new dataset spanning listed and private nonfinancial zombie
firms across Advanced Economies and Emerging Markets over the past two decades. Our …

Large-scale government and central bank interventions in the context of the COVID-19 crisis
have reinvigorated the debate on the threat of a zombification of the economy if unviable …

We examine the Indian bank asset quality review, which doubled the declared loan
delinquency rate. Relative economic stability during the exercise and the absence of a …

This papers develops a taxonomy of financially distressed and zombie firms using a rich
dataset that combines detailed firm-level and bank-firm level information in Spain. A …

This paper discusses policy implications of a potentialsurge in NPLs due to COVID-19. The
study provides an empirical assessment of potential scenarios and draws lessons from …

We analyze the credit supply and real effects of bank bail-ins by exploiting the unexpected
failure and subsequent resolution of a major Portuguese bank. Using loan-level data, we …

We show that US banks do not engage in zombie lending to firms of deteriorating
profitability, irrespective of capital levels and exposure to such firms. In contrast, unregulated …

After the global financial crisis, the Financial Stability Board (FSB) began designating some
financial institutions as “Global Systemically Important Banks (GSIBs)”. Because GSIB status …