What drives the demand of monetary financial institutions for domestic government bonds? Empirical evidence on the impact of Basel II and Basel III
This paper examines the treatment of sovereign debt exposure within the Basel framework and measures the impact of bank regulation on the demand of Monetary Financial Institutions (MFI) for marketable sovereign debt. Our results suggest that bank regulation has a significant positive impact on MFI demand for domestic government securities. The results are representative for the MFI in the euro zone. They remain highly robust and significant after controlling for other influential factors and potential endogeneity.
Year of publication: |
2014
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Authors: | Lang, Michael ; Schröder, Michael |
Publisher: |
Mannheim : Zentrum für Europäische Wirtschaftsforschung (ZEW) |
Subject: | Monetary Financial Institutions | Financial sector regulation | Sovereign bond holdings | Investment incentives |
Saved in:
freely available
Series: | ZEW Discussion Papers ; 14-123 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 814409164 [GVK] hdl:10419/106139 [Handle] RePEc:zbw:zewdip:14123 [RePEc] |
Classification: | G11 - Portfolio Choice ; G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation |
Source: |
Persistent link: https://www.econbiz.de/10010460706