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Banks' financial distress, lending supply and consumption expenditure

Damar, H. Evren; Gropp, Reint E.; Mordel, Adi - 2014

We employ a unique identification strategy linking survey data on household consumption expenditure to bank-level data to estimate the effects of bank financial distress on consumer credit and consumption expenditures. We show that households whose banks were more exposed to funding shocks...

Persistent link: https://www.econbiz.de/10011605732

The Leverage Ratio, Risk-Taking and Bank Stability

Smith, Jonathan Acosta - 2017

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk-taking associated with the introduction of the Basel III Leverage Ratio. This is addressed in both a theoretical and empirical setting. Using a theoretical micro model, we show that a...

Persistent link: https://www.econbiz.de/10012953806

Firm or Bank Weakness? Access to Finance Since the European Sovereign Debt Crisis

Corbisiero, Giuseppe - 2020

This paper uses a unique dataset where credit rejections experienced by euro area firms are matched with firm and bank characteristics. This allows us to study simultaneously the role that bank and firm weakness had in the credit reduction observed in the euro area during the sovereign debt...

Persistent link: https://www.econbiz.de/10012844332

Cyclical Systemic Risk and Downside Risks to Bank Profitability

Lang, Jan Hannes - 2020

reductions in bank capital, our method can be used to quantify the level of “Bank capital-at-risk” for a given banking system …

Persistent link: https://www.econbiz.de/10012834322

Latent Fragility : Conditioning Banks' Joint Probability of Default on the Financial Cycle

Bochmann, Paul; Hiebert, Paul; Schüler, Yves; … - 2022

risk. In this framework, banking sector distress in the form of the joint probability of default of financial … the euro area, US and UK illustrates how the unravelling of excess leverage can magnify banking sector distress. Capturing … this dependence of banking sector distress on prevailing financial imbalances can enhance risk surveillance and stress …

Persistent link: https://www.econbiz.de/10013403523

Do bank insiders impede equity issuances?

Goetz, Martin; Laeven, Luc; Levine, Ross - 2021

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 greater insider ownership leads to less equity issuances....

Persistent link: https://www.econbiz.de/10012422173

Bank Risk During the Financial Crisis : Do Business Models Matter?

Altunbas, Yener - 2011

We exploit the 2007-2009 financial crisis to analyze how risk relates to bank business models. Institutions with higher risk exposure had less capital, larger size, greater reliance on short-term market funding, and aggressive credit growth. Business models related to significantly reduced bank...

Persistent link: https://www.econbiz.de/10013119519

Bridging the Banking Sector with the Real Economy : A Financial Stability Perspective

Costeiu, Adrian - 2013

This paper builds a macro-prudential tool designed to assess whether the banking sector is adequately prepared to … banking sector and the real sector is established via the corporate sector channel. The macro-prudential tool consists of a … order to capture the feedback effects from the macroeconomic stance into the banking sector, via the corporate sector …

Persistent link: https://www.econbiz.de/10013075928

A Sensitivities Based CoVaR Approach to Assets Commonality and its Application to SSM Banks

Del Vecchio, Leonardo; Giglio, Carla; Shaw, Frances; … - 2022

One important source of systemic risk can arise from asset commonality among ﬁnancial institutions. This indirect interconnection may occur when ﬁnancial institutions invest in similar or correlated assets and is also described as overlapping portfolios. In this work, we propose a...

Persistent link: https://www.econbiz.de/10014239684

Real effects of credit supply shocks: Evidence from Danish banks, firms, and workers

Hviid, Simon Juul; Schroeder, Christofer - 2024

Contractions in credit supply can lead firms to reduce their level of employment, yet little is known about how these shocks affect the composition of firms' employees and outcomes at the worker level. This paper investigates how bank distress affects credit provision and its effects on...

Persistent link: https://www.econbiz.de/10015199455