Showing 1 - 10 of 28
We describe a dynamic model of financial intermediation in which fundamental characteristics of the economy imply a unique equilibrium path of bank and financial market lending. Yet we also show that economies whose fundamental characteristics have converged may continue to have very different...
Persistent link: https://www.econbiz.de/10011604488
Using confidential information on banks' portfolios, inaccessible to market participants, we show that banks that … towards greener technologies and are robust to controlling for banks' climate risk discussions. Examining the mechanisms … behind the strategic disclosure choices, we highlight that banks are hesitant to sever ties with existing brown borrowers …
Persistent link: https://www.econbiz.de/10014543654
This paper reviews the literature on the finance-growth nexus within a neoclassical growth framework, placing an emphasis on the policy implications in the current European environment, that has placed financial reforms high on the policy Agenda. While more research is needed to establish...
Persistent link: https://www.econbiz.de/10011604833
We study the sensitivity of the realised loss-given-default (LGD) to macroeconomic conditions by exploring Global Credit's confidential dataset on observed cash flows from defaulted loans. Given the prolonged duration of loan recovery, spanning several years, and the potential for macroeconomic...
Persistent link: https://www.econbiz.de/10015199477
This paper studies the bilateral drivers of mergers and acquisitions (M&As) between European banks. Two findings … document that banks use M&A as a device to leverage their expertise rather than to diversify. (i) Following the literature on … matrimonial matching by using a binary logit model, the paper examines how the structure of acquiring banks in terms of …
Persistent link: https://www.econbiz.de/10013368004
How a historic drop in bank deposits shapes banks' loan supply? We exploit the effects of a large, and unexpected … includes all bank-firm lending relationships in all euro area countries. We find that banks experiencing large deposit outflows … is stronger for fixed rate and longer maturity loans, but not for riskier borrowers. The effect is mostly driven by banks …
Persistent link: https://www.econbiz.de/10014543622
This paper studies the impact of voluntary climate commitments by banks on their lending activity. We use … increased participation by the largest banks and banks with the most pre-existing exposure to high-polluting industries. Setting … priority for decarbonization. However, climate-aligned banks do not change their lending or loan pricing differentially …
Persistent link: https://www.econbiz.de/10014543631
many banks have a MRP below one, indicating that those banks have little incentive to enhance their efficiency to increase …-conduct performance, and 'quiet life' hypotheses and to detect comparatively weak non-competitive banks. Our new measure of firm …
Persistent link: https://www.econbiz.de/10014543644
provisions tend to be more procyclical at larger and better capitalized banks. The procyclicality of loan loss provisions can …
Persistent link: https://www.econbiz.de/10012142132
This paper investigates the relationship between bank funding costs and solvency for a large sample of euro area banks …. Among the deposit rates, the interest rates of the overnight deposits are the least sensitive. Banks' asset quality …
Persistent link: https://www.econbiz.de/10012389559