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The Effect of Possible EU Diversification Requirements on the Risk of Banks’ Sovereign Bond Portfolios

Craig, Ben R. - 2020

Recent policy discussion includes the introduction of diversification requirements for sovereign bond portfolios of European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the sovereign bond portfolios of the major European banks....

Persistent link: https://www.econbiz.de/10012838336

When Losses Turn into Loans : The Cost of Undercapitalized Banks

Blattner, Laura - 2019

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …

Persistent link: https://www.econbiz.de/10012889191

Breaking the Shackles : Zombie Firms, Weak Banks and Depressed Restructuring in Europe

Andrews, Dan - 2019

bank health and the consequences for aggregate productivity in 11 European countries. Controlling for cyclical effects, the … Europe may at least partly stem from bank forbearance. The increasing survival of zombie firms congests markets and … around one-third of the impact of zombie congestion on capital misallocation can be directly attributed to bank health and …

Persistent link: https://www.econbiz.de/10012892781

Markets, Banks, and Shadow Banks

Martinez-Miera, David - 2019

We analyze the effect of bank capital requirements on the structure and risk of a financial system where markets …

Persistent link: https://www.econbiz.de/10012893588

A Dynamic Model of Bank Behaviour under Multiple Regulatory Constraints

Behn, Markus - 2019

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

Persistent link: https://www.econbiz.de/10012893728

Rules and Discretion(s) in Prudential Regulation and Supervision : Evidence from EU Banks in the Run-Up to the Crisis

Maddaloni, Angela - 2019

framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …

Persistent link: https://www.econbiz.de/10012869817

Bank Bailouts and Competition - Did TARP Distort Competition Among Sound Banks?

Koetter, Michael; Noth, Felix - 2015

This study investigates if the Troubled Asset Relief Program (TARP) distorted price competition in U.S. banking. Political indicators reveal bailout expectations after 2009, manifested as beliefs about the predicted probability of receiving equity support relative to failing during the TARP...

Persistent link: https://www.econbiz.de/10013020652

Bank Bias in Europe : Effects on Systemic Risk and Growth

Langfield, Sam - 2015

Europe's financial structure has become strongly bank-based – far more so than in other economies. We document that an … paper concludes by discussing policy solutions to Europe's “bank bias”, which include reducing regulatory favouritism …

Persistent link: https://www.econbiz.de/10013020657

Banks, Shadow Banking, and Fragility

Luck, Stephan - 2014

This paper studies a banking model of maturity transformation in which regulatory arbitrage induces the coexistence of regulated commercial banks and unregulated shadow banks. We derive three main results: First, the relative size of the shadow banking sector determines the stability of the...

Persistent link: https://www.econbiz.de/10013049188

Bank Reactions After Capital Shortfalls

Kok, Christoffer - 2013

This paper investigates whether European banks have capital targets and how deviations from the target impact their equity composition and activity mix. Using quarterly data for a sample of large European banks between 2004 and 2011, we show that there are notable asymmetries in banks' reactions...

Persistent link: https://www.econbiz.de/10013073081