We extend the reference DSGE model used for policy analysis at the NBB with a financial sector, by incorporating multi-period fixed-rate corporate and mortgage loans, an imperfect pass-through from policy rates to the deposit rate, and bank capital re-quirements. Adding multi-period fixed-rate...

Purpose - The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in Sub-Saharan Africa (SSA). Design/methodology/approach The paper uses 700 bank-year observations of universal...

I argue that coverage caps on Federal Deposit Insurance (FDI), a vestige of the 1933-2005 era when premia were neither risk-priced nor regularly assessed, have become not only anachronistic – a bank law equivalent of the human tailbone – but dangerous. The failure of Silicon Valley Bank in...

In recent decades U.S. firms increasingly finance themselves with bonds instead of bank loans, a development with important macroeconomic implications. What causes this change in corporate debt composition? This paper finds that bank scope expansion significantly contributes to the development....

This study analyzes information production and trading behavior of banks with lending relationships. We combine trade-by-trade supervisory data and credit-registry data to examine banks' proprietary trading in borrower stocks around a large number of corporate events. We find that relationship...