Showing 1 - 10 of 441
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
Macroprudential policies are often aimed at the commercial banking sector, while a host of other non-bank financial … institutions, or shadow banks, may not fall under their jurisdiction. We study the effects of tightening commercial bank regulation … requirements on commercial banks increase shadow bank lending, which may have adverse financial stability effects. Coordinating …
Persistent link: https://www.econbiz.de/10012834226
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
We propose a novel framework to identify distressed households by taking account of both the solvency and the liquidity situation of an individual household. Using the data from the Household Finance and Consumption Survey and the country-level data on non-performing loans we calibrate our...
Persistent link: https://www.econbiz.de/10013315575
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
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
This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …
Persistent link: https://www.econbiz.de/10012953806
We build a model of rational bubbles in a limited commitment economy and show that the impact of the bubble on the real economy crucially depends on who holds the bubble. When banks are the bubble-holders, this amplifies the output boom while the bubble survives but also deepens the recession...
Persistent link: https://www.econbiz.de/10013097948
consequences of the liquidity stress to the solvency ratio; (ii) quantify the liquidity deficit that a central bank should …
Persistent link: https://www.econbiz.de/10013075929
. Second, while higher bank capital requirements decrease default risk and funding costs, they make it also more profitable to …
Persistent link: https://www.econbiz.de/10012841208