The difficulty investors have in assessing the value of banks can inhibit recovery after financial crises, a working paper published by the Deutsche Bundesbank argues.

In Learning about banks' net worth and the slow recovery after the financial crisis, Josef Hollmayr and Michael Kühl examine how information about the net worth of banks affects the real economy. Their paper is, they say, "the first to examine what kind of information rigidity prevails in financial markets" and to incorporate this