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Stress Tests and Capital Requirement Disclosures : Do They Impact Banks’ Lending and Risk-Taking Decisions?

Konietschke, Paul; Ongena, Steven; Marques, Aurea Ponte - 2022

-differences strategy for a comparable sample of banks. We find that banks participating in the stress tests reallocate credit away from …

Persistent link: https://www.econbiz.de/10013404671

How Do Banking Groups React to Macroprudential Policies? Cross-Border Spillover Effects of Higher Capital Buffers on Lending, Risk-Taking and Internal Markets

Cappelletti, Giuseppe; Marques, Aurea Ponte; Salleo, Carmelo - 2021

We study the impact of macroprudential capital buffers on banking groups' lending and risk-taking decisions, also investigating implications for internal capital markets. For identification, we exploit heterogeneity in buffers applied to other systemically important institutions, using...

Persistent link: https://www.econbiz.de/10013210623

Multiple Lending, Credit Lines and Financial Contagion

Cappelletti, Giuseppe - 2017

Multiple lending has been widely investigated from both an empirical and a theoretical perspective. Nevertheless, the implications of multiple lending for the stability of the banking system still need to be understood. By lending to a common set of borrowers, banks are interconnected and then...

Persistent link: https://www.econbiz.de/10012950803

Loan Guarantees, Bank Underwriting Policies and Financial Fragility

Carletti, Elena; Leonello, Agnese; Marquez, Robert - 2023

Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees...

Persistent link: https://www.econbiz.de/10014257509

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

Securitization and Lending Standards : Evidence from the Wholesale Loan Market

Kara, Alper - 2011

aggressive on their loan pricing practices. This suggests that securitization activity lead to laxer credit standards …

Persistent link: https://www.econbiz.de/10013122538

The Impact of G-Sib Identification on Bank Lending : Evidence from Syndicated Loans

Behn, Markus; Schramm, Alexander - 2021

effect of the reforms on overall credit supply, while at the same time documenting a substantial decline in borrower- and …

Persistent link: https://www.econbiz.de/10013315245

A Study on the EBA Stress Test Results : Influence of Bank, Portfolio, and Country-Level Characteristics

Hernández, Javier; Población García, Javier; … - 2022

The purpose of this paper is to investigate the main drivers of the change in the credit risk provisions at a portfolio … drivers of the three-year projections of credit losses. First, we define a model containing all the macroeconomic variables … variables. Our results show that, although EBA variables explain most part of credit risk provisions, we obtain evidence about …

Persistent link: https://www.econbiz.de/10013299037

Proposal on ELBE and LGD In-Default : Tackling Capital Requirements after the Financial Crisis

Ramos González, Marta - 2018

Following the financial crisis, the share of non-performing loans has significantly increased, while the regulatory guidelines on the Internal-Ratings Based (IRB) approach for capital adequacy calculation related to defaulted exposures remains too general. As a result, the high-risk nature of...

Persistent link: https://www.econbiz.de/10012916067

Behind the Scenes of the Beauty Contest : Window Dressing and the G-SIB Framework

Behn, Markus; Mangiante, Giacomo; Parisi, Laura; Wedow, … - 2021

This paper illustrates that systemically important banks reduce a range of activities at year-end, leading to lower additional capital requirements in the form of G-SIB buffers. The effects are stronger for banks with higher incentives to reduce the indicators, and for banks with balance sheet...

Persistent link: https://www.econbiz.de/10013315360