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The Relevance of Banks to the European Stock Market

Kick, Andreas; Rottmann, Horst - 2022

Banks have always played an ambivalent role in ﬁnancial markets. On the one hand, they provide essential services for the market; on the other hand, problems in the banking sector can send shock waves through the entire economy. Given this prominent role, it is not surprising that Pereira and...

Persistent link: https://www.econbiz.de/10014083474

Domestic Banks as Lightning Rods? Home Bias and Information During the Eurozone Crisis

Saka, Orkun - 2019

European banks have been criticized for holding excessive domestic government debt during the recent Eurozone crisis, which may have intensified the diabolic loop between sovereign and bank credit risks. By using a novel bank-level dataset covering the entire timeline of the Eurozone crisis, I...

Persistent link: https://www.econbiz.de/10012859050

Integrating with their feet: cross-border lending at the German-Austrian border

Fidrmuc, Jarko; Hainz, Christa - 2008

The financial integration in Europe concentrates on cross-border mergers rather than cross-border lending and emphasizes the need for harmonizing bank regulation and supervision. We study the impact of cross-border lending in a theoretical model where banks acquire either hard or soft...

Persistent link: https://www.econbiz.de/10010264346

Disclosure Deregulation of Quarterly Reporting

Behrmann, Vanessa; Hornuf, Lars; Zimmermann, Jochen - 2022

Directive into German law and analyze whether a reduction in the minimum content requirements for quarterly reporting increases … manually examine firms’ quarterly reports for their content elements and construct a new quarterly reporting measure with an … ordinal quality dimension. The results reveal that during the period from 2012 to 2019 lower quarterly reporting levels due to …

Persistent link: https://www.econbiz.de/10013323972

Regulatory and Bailout Decisions in a Banking Union

Haufler, Andreas - 2021

We model a banking union of two countries whose banking sectors differ in their average probability of failure and externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of which banks are to be shut down before they can...

Persistent link: https://www.econbiz.de/10013236197

Embedded Supervision : How to Build Regulation into Decentralised Finance

Auer, Raphael A. - 2022

The emergence of so-called “decentralised finance” (DeFi) and a shadow financial system of cryptocurrency exchanges and stablecoin issuers raises the challenge of how to apply technology-neutral regulation so that similar risks are subject to the same rules. This paper makes the case for...

Persistent link: https://www.econbiz.de/10013405970

Bank Bonus Pay as a Risk Sharing Contract

Efing, Matthias - 2019

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs earnings shocks....

Persistent link: https://www.econbiz.de/10012892088

Uncertainty and the Cost of Bank vs. Bond Finance

Grimme, Christian - 2019

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending rates. This finding can be explained with a model that...

Persistent link: https://www.econbiz.de/10012892132

Freeze! Financial Sanctions and Bank Responses

Efing, Matthias - 2019

We study the effects of financial sanctions on cross-border credit supply. Using a differences-in-differences approach to analyze eleven sanctions episodes between 2002 and 2015, we find that banks located in Germany reduce their positions in countries with sanctioned entities by 38%. The...

Persistent link: https://www.econbiz.de/10012892162

Trade and Credit Reallocation : How Banks Help Shape Comparative Advantage

Keuschnigg, Christian - 2019

Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks play a major role in cutting credit to non-viable firms in downsizing sectors and in providing new credit to finance investment in expanding, innovative sectors. Structural...

Persistent link: https://www.econbiz.de/10012892187