Showing 1 - 10 of 486
Crowding-out during the British Industrial Revolution has long been one of the leading explanations for slow growth during the Industrial Revolution, but little empirical evidence exists to support it. We argue that examinations of interest rates are fundamentally misguided, and that the...
Persistent link: https://www.econbiz.de/10005504267
large amount of aggregate tail risk is missing from the price of financial sector crash insurance during the financial …
Persistent link: https://www.econbiz.de/10011083289
This paper studies the determinants of global liquidity using data on cross-border bank flows, with a longer time series and broader country sample than previous studies. We define global liquidity as non-price determinants of cross-border credit supply, consistent with its meaning as the...
Persistent link: https://www.econbiz.de/10011145399
This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …
Persistent link: https://www.econbiz.de/10005123714
This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher … insurance coverage amplifies this effect, two alternative arrangements (risk based contributions to the deposit insurance fund …
Persistent link: https://www.econbiz.de/10005124322
The paper studies risk mitigation associated with capital regulation, in a context where banks may choose tail risk … assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited … liability. Moreover, higher capital may have an unintended e¤ect of enabling banks to take more tail risk without the fear of …
Persistent link: https://www.econbiz.de/10009246611
assets to attain a good risk-adjusted rate of return without prejudice to the first two core functions. I conclude that the … policies, and by eliminating the large unnecessary currency risk in the Riksbank’s balance sheet. …
Persistent link: https://www.econbiz.de/10011083263
Many of the world’s developed economies have introduced, or are planning to introduce, bank bail-in regimes. Both the planned EU resolution regime and the European Stability Mechanism Treaty involve the participation of bank creditors in bearing the costs of bank recapitalization via the...
Persistent link: https://www.econbiz.de/10011083962
central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must …
Persistent link: https://www.econbiz.de/10011084413
In the real world of less than perfect markets, balancing the benefits and costs of financial liberalization is usually impossible ex ante. Having been slow to liberalize, postwar Europe offers a possible testing ground. Looking at the experience in Belgium, France and Italy, a number of...
Persistent link: https://www.econbiz.de/10005067433