Showing 1 - 10 of 21
with construction firms or with retail firms would have produced substantially higher returns on equity with less risk … returns relative to risk, although banks were not necessarily a dominant part of some combinations. These findings suggest … authors stress that bank management contemplating diversification into the commercial sector must be selective about which …
Persistent link: https://www.econbiz.de/10010281866
enjoy a significant reduction in funding costs if affiliation with a bank extended the federal safety net for banks to cover …
Persistent link: https://www.econbiz.de/10010281868
In the United States and the European Union (EU), political incentives to oppose cross-border banking have been strong in spite of the measurable benefits to the real economy from breaking down geographic barriers. Even a federal-level supervisor and safety net are not by themselves sufficient...
Persistent link: https://www.econbiz.de/10011460623
acquiring banks value profitable, high-growth, and low-risk targets. We also find that the strength of bank regulation and …We analyze the takeover premiums paid for a sample of European bank mergers between 1997 and 2007. We find that … supervision and of deposit insurance regimes in Europe has measurable effects on takeover pricing. Stricter bank regulatory …
Persistent link: https://www.econbiz.de/10010292291
This paper studies the impact of European bank mergers and acquisitions on changes in key safety and soundness measures … of both acquirers and targets. We find that capitalization, profitability, and liquidity show signs of statistically and … insurance funding regimes tend to result in positive postmerger changes in liquidity and performance. …
Persistent link: https://www.econbiz.de/10010292358
policy tools for dealing with systemic risk. The article also discusses some lingering systemic risk issues, including the … effect of a large bank's failure on financial derivatives markets and the effect of unexpected massive losses at one or more … banks, as well as FDICIA's provisions designed to reduce systemic risk. …
Persistent link: https://www.econbiz.de/10010281874
remain. This paper examines whether stricter regulation of incentive compensation is the missing piece needed to reduce risk … to acceptable levels. Unfortunately, this review of the literatures on the relationship of risk to bank chief operating …Although a number of steps have been taken to reduce the risk of financial stability, some significant weaknesses …
Persistent link: https://www.econbiz.de/10012030288
credit and interest rate risk, the way it measures bank capital, and the way it creates countercyclical capital buffers …
Persistent link: https://www.econbiz.de/10010397674
The Basel capital adequacy ratios lost credibility with financial markets during the crisis. This paper argues that failure was the result of the reliance of the Basel standards on overstated asset values in reported equity capital. The United States' stress tests were able to assist in...
Persistent link: https://www.econbiz.de/10010397713
This paper analyses the determinants of banks loan loss allowances for samples of US banks and three non-US samples: a group of 21 countries, Canada and Japan.The model includes fundamental (or non-discretionary) determinants of the allowance such as non-performing loans, and discretionary...
Persistent link: https://www.econbiz.de/10012147897