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We examine the issue of the appropriate selection of macroprudential instruments according to the vulnerabilities identified and the policymakers' objectives using a version of the 3D DSGE model following Mendicino et al. (2020) and Hinterschweiger et al. (2021) calibrated for the euro area. We...
Persistent link: https://www.econbiz.de/10015199504
comes from a moral hazard problem in firms' financing that banks' equity capital serves to ameliorate. Tight monetary policy …
Persistent link: https://www.econbiz.de/10012142141
Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short-term interest rates soften standards, for household and corporate loans. This softening – especially for mortgages – is amplified by securitization activity, weak supervision...
Persistent link: https://www.econbiz.de/10011605294
procyclicality of banks' loan loss provisioning. We use granular loan-level data from the euro area's credit register and investigate …. Additionally, banks with a larger capital headroom provision significantly more, particularly for loans using IFRS 9. This suggests … a higher risk of underprovisioning for less capitalized banks. …
Persistent link: https://www.econbiz.de/10014374785
one banking relationship as long as they account for only a small share of the total loan volume of their banks. The …
Persistent link: https://www.econbiz.de/10011605959
reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …
Persistent link: https://www.econbiz.de/10011605225
This paper investigates the costs and benefi ts of liquidity regulation. We find that liquidity tools are bene ficial … with current Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) rules would have reduced banks' reliance on … publicly provided liquidity during the global fi nancial crisis without removing such assistance altogether. The paper also …
Persistent link: https://www.econbiz.de/10012914517
bank runs. If the probability of a run is small, then banks specialize fully into the provision of liquidity insurance …: They provide a higher degree of liquidity insurance when compared to the economy with banks alone. If the probability of a … investment reduces consumers' incentives to run. Increased provision of liquidity insurance by banks has the opposite effect. I …
Persistent link: https://www.econbiz.de/10011604891
We evaluate the role of insider ownership in shaping banks' equity issuances in response to the global financial crisis …. We construct a unique dataset on the ownership structure of U.S. banks and their equity issuances and discover that … between bank equity and lending, the results stress that ownership structure can shape the resilience of banks-and hence the …
Persistent link: https://www.econbiz.de/10012422173
This paper provides the first empirical evidence that bank regulation is associated with cross-border spillover effects … through the lending activities of large multinational banks. We analyze business lending by 155 banks to 9613 firms in 1976 … are stronger when banks are less efficiently supervised at home, and are observed to exist independently from the impact …
Persistent link: https://www.econbiz.de/10013099025