Showing 1 - 10 of 1,243
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
In this study, we explore the relationship between certain structural features of the banking sectors in EU Member … States and the performance of the respective banking sectors over the financial cycle. Using the financial cycle indicator … developed by Stremmel (2015), we estimate the impact of the structural features of the banking sector on the amplitude of the …
Persistent link: https://www.econbiz.de/10011605857
This paper assesses the usefulness of private credit variables and other macrofinancial and banking sector indicators … domestic and global financial factors such as equity and house prices as well as banking sector variables help to predict …
Persistent link: https://www.econbiz.de/10011605649
depends on the state of the economy. Because of the general equilibrium effect, the more aggregate banking capital the tighter …, at the peak of a boom, even a small adverse shock can trigger a banking sector collapse, followed by an excessively …
Persistent link: https://www.econbiz.de/10011605875
Using household survey data, we document evidence of a loosening of credit standards in Euro area countries that experienced a property price boom-and-bust cycle. Borrowers in these countries exhibited significantly higher loan-to-value (LTV) and loan-to-income (LTI) ratios in the run up to the...
Persistent link: https://www.econbiz.de/10012142121
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/10011605656
We provide a simple and tractable accounting-based stress-testing framework to assess loss dynamics in the banking …
Persistent link: https://www.econbiz.de/10013314832
This paper investigates the impact of the capital relief package adopted to support euro area banks at the outbreak of the COVID-19 pandemic. By leveraging confidential supervisory and credit register data, we uncover two main findings. First, capital relief measures support banks' capacity to...
Persistent link: https://www.econbiz.de/10014239728
The Euro area economic activity and banking sector have shown substantial fragility over the last years with remarkable …
Persistent link: https://www.econbiz.de/10011605572
The Euro area economic activity and banking sector have shown substantial fragility over the last years with remarkable …
Persistent link: https://www.econbiz.de/10013085173