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SSM thematic review on profitability and business models : report on the outcome of the assessment

European Central Bank - 2018

In 2016 European banking supervision launched a thematic review in order to assess in more depth the profitability … models. These challenges include, among others, low profitability and pressure on revenues from the economic environment, the … strategically their business models; to monitor the consequences of weak profitability for banks' risk-taking behaviour; and to …

Persistent link: https://www.econbiz.de/10015283044

The inflationary consequences of prioritising central bank profits

Gebauer, Stefan (contributor); Pool, Sebastiaan (contributor) - European Central Bank - 2024

This paper examines the impact of rising interest rates on central bank profitability. Using a stylized income model … policies may dampen short-term profitability if interest rates rise, they do not undermine a central bank's financial strength …

Persistent link: https://www.econbiz.de/10015321131

Does a leverage ratio requirement increase bank stability? : N°1676, May 2014

Kiema, Ilkka (contributor); Jokivuolle, Esa (contributor) - European Central Bank - 2014

Basel III has introduced a non-risk-weighted leverage ratio requirement (LRR) which complements the internal ratings based (IRB) capital requirements. It provides a backstop against model risk which arises if some loans get incorrectly rated and become toxic. We study the effects of the LRR on...

Persistent link: https://www.econbiz.de/10015301902

Changes in bank financing patterns : April 2012

European Central Bank - 2012

The recent financial crisis has led to changes in banks' funding patterns at the global level which have been widely discussed in policy and academic fora. This report aims at identifying and documenting the main changes in the funding patterns of euro area banks. Using statistics for monetary...

Persistent link: https://www.econbiz.de/10015307491

Leverage actually : the impact on banks' borrowing costs in euro area money markets

Andreeva, Desislava Č. (contributor); … - European Central Bank - 2025

This paper explores the impact of the regulatory leverage ratio (LR) on banks' demand for reserves and thus the pricing of overnight liquidity in the euro area money markets. We use daily transaction-level money market data during the period between January 2017 February 2023 and examine the two...

Persistent link: https://www.econbiz.de/10015322707

Corporate debt structure and the financial crisis

De Fiore, Fiorella (contributor); Uhlig, Harald (contributor) - European Central Bank - 2015

We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...

Persistent link: https://www.econbiz.de/10015298753

Bank bias in Europe : effects on systemic risk and growth

Langfield, Sam (contributor); Pagano, Marco (contributor) - European Central Bank - 2015

Europe's financial structure has become strongly bank-based - far more so than in other economies. We document that an increase in the size of the banking system relative to equity and private bond markets is associated with more systemic risk and lower economic growth, particularly during...

Persistent link: https://www.econbiz.de/10015299047

Identifying excessive credit growth and leverage : N°1723, August 2014

Alessi, Lucia (contributor); Detken, Carsten (contributor) - European Central Bank - 2014

Persistent link: https://www.econbiz.de/10015301806

Imports and profitability in the euro area manufacturing sector: the role of emerging market economies

Peltonen, Tuomas A.; Skala, Martin; Santos Rivera, Alvaro; … - European Central Bank - 2008

The paper analyses the impact of import penetration on firms’ profitability in 15 manufacturing industries in 10 euro … competition from emerging market economies has had an overall negative impact on companies’ profitability in the euro area … profitability. Finally, we find asymmetric effects on profitability across euro area countries and sectors. JEL Classification: L11 …

Persistent link: https://www.econbiz.de/10005344831

The decline of activist stabilization policy: natural rate misperceptions, learning, and expectations

Orphanides, Athanasios; Williams, John C. - European Central Bank - 2004

, learning from the experience of the 1970s, eschewed activist policies in favor of policies that concentrated on the achievement …

Persistent link: https://www.econbiz.de/10005530787