Banks generally monitor their "credit engagements" well, but those that lend more than they should are more likely to rely upon capital support, a discussion paper published by the Deutsche Bundesbank finds.

The winner's curse – evidence on the danger of aggressive credit growth in banking, by Thomas Kick, Thilo Pausch and Benedikt Ruprecht, looks at why banks engage in excessive lending, offering a model that helps identify those that do even when there is no "lending boom" at the aggregate