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Bank Networks : Contagion, Systemic Risk and Prudential Policy

Aldasoro, Iñaki - 2015

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

Persistent link: https://www.econbiz.de/10013028909

Regulatory Arbitrage and the Efficiency of Banking Regulation

Boyer, Pierre C. - 2016

We study the efficiency of banking regulation under financial integration. Banks freely choose the jurisdiction where to locate their activities and have private information about their efficiency level. Regulators non-cooperatively offer any regulatory contract that satisfies information and...

Persistent link: https://www.econbiz.de/10012991941

Competition and Stability in Banking

Vives, Xavier - 2013

I review the state of the art of the academic theoretical and empirical literature on the potential trade-off between competition and stability in banking. There are two basic channels through which competition may increase instability: by exacerbating the coordination problem of...

Persistent link: https://www.econbiz.de/10013094726

The Regulator's Trade-Off : Bank Supervision vs. Minimum Capital

Buck, Florian - 2013

We develop a simple model of banking regulation with two policy instruments: minimum capital requirements and supervision of domestic banks. The regulator faces a trade-off: high capital requirements cause a drop in the banks' profitability, while strict supervision reduces the scope of...

Persistent link: https://www.econbiz.de/10013090254

The Euro Area's Common Pool Problem Revisited : Has the Single Supervisory Mechanism Ameliorated Forbearance and Evergreening?

Steinkamp, Sven - 2017

The Single Supervisory Mechanism was introduced to eliminate the common-pool problem and limit uncontrolled lending by national central banks (NCBs). We analyze its effectiveness. Second, we model how, by forbearing and providing refinancing credit, NCBs avoid domestic resolution costs and,...

Persistent link: https://www.econbiz.de/10012945053

Unexpected Loan Losses and Bank Capital in an Estimated DSGE Model of the Euro Area

Hristov, Nikolay - 2016

We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non-diversifiable losses due to aggregate shocks. The framework is used to explore the importance of the interaction between macroeconomic conditions, credit default and bank...

Persistent link: https://www.econbiz.de/10012978077

EU Banks Rating Assignments : Is there Heterogeneity between New and Old Member Countries?

Caporale, Guglielmo Maria - 2013

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our aim is to assess whether “old” and “new” EU countries are rated differently and to determine whether “new” ones are assigned lower ratings, ceteris paribus, than...

Persistent link: https://www.econbiz.de/10013094667

Misreported Trade

Farhad, Mohammad - 2018

misreporting, as well as over- and under-reporting of exports and imports. Applying this method to existing bilateral trade data on …, focusing on the role of tariff and VAT rates as predictors of import under-reporting. As predicted by economic theory, case … studies, and economic intuition, we find positive correlations for both tariff and VAT rates with import under-reporting …

Persistent link: https://www.econbiz.de/10012912374

Parent-Child Information Frictions and Human Capital Investment : Evidence from a Field Experiment

Bergman, Peter - 2015

This paper uses a field experiment to answer how information frictions between parents and their children affect investments in education and how much reducing these frictions can improve student achievement. In Los Angeles, a random sample of parents was provided detailed information about...

Persistent link: https://www.econbiz.de/10013020574

Cross-Border Banking in Regulated Markets : Is Financial Integration Desirable?

Haufler, Andreas - 2016

We set up a two-country, regional model of trade in financial services. Competitive firms in each country manufacture untraded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign market. Duopolistic banks can choose their levels of...

Persistent link: https://www.econbiz.de/10012978391