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Driscoll, John C. - 2013

We examine the dynamics of eleven different deposit rates for a panel of over 2,500 branches of about 900 depository institutions observed weekly over ten years. We replicate previous work showing that rates are downwards-flexible and upwards-sticky, and show that a simple menu cost model can...

Persistent link: https://www.econbiz.de/10013072668

Why are banks not recapitalized during crises?

Crosignani, Matteo - 2017

I develop a model where the sovereign debt capacity depends on the capitalization of domestic banks. Low-capital banks optimally tilt their government bond portfolio toward domestic securities, linking their destiny to that of the sovereign. If the sovereign risk is sufficiently high,...

Persistent link: https://www.econbiz.de/10011710170

Can a Bank Run Be Stopped? Government Guarantees and the Run on Continental Illinois

Carlson, Mark - 2016

This paper analyzes the run on Continental Illinois in 1984. We find that the run slowed but did not stop following an extraordinary government intervention, which included the guarantee of all liabilities of the bank and a commitment to provide ongoing liquidity support. Continental's outflows...

Persistent link: https://www.econbiz.de/10013210363

Limited Deposit Insurance Coverage and Bank Competition

Shy, Oz - 2014

Deposit insurance designs in many countries place a limit on the coverage of deposits in each bank. However, no limits are placed on the number of accounts held with different banks. Therefore, under limited deposit insurance, some consumers open accounts with different banks to achieve higher...

Persistent link: https://www.econbiz.de/10013043004

Limited Deposit Insurance Coverage and Bank Competition

Shy, Oz - 2015

Deposit insurance schemes in many countries place a limit on the coverage of deposits in each bank. However, no limits are placed on the number of accounts held with different banks. Therefore, under limited deposit insurance, some consumers open accounts with different banks to achieve higher...

Persistent link: https://www.econbiz.de/10013032989

Safe Collateral, Arm's-Length Credit : Evidence from the Commercial Real Estate Mortgage Market

Black, Lamont; Krainer, John; Nichols, Joseph B. - 2017

When collateral is safe, there are less opportunities for things to go wrong. We examine matching between collateral … (CMBS) conduits and bank portfolios. We model CMBS financing as lower cost but less informed, such that only safe collateral … securitization channel, when available, funds safe collateral …

Persistent link: https://www.econbiz.de/10014121171

Contagion in Debt and Collateral Markets

Chang, Jin Wook; Chuan, Grace - 2023

This paper investigates contagion in financial networks through both debt and collateral markets. We find that the role … of collateral is mitigating counterparty exposures and reducing contagion but has a phase transition property. Contagion … can change dramatically depending on the amount of collateral relative to the debt exposures. When there is an abundance …

Persistent link: https://www.econbiz.de/10014354909

The Collateral Channel and Bank Credit

Gupta, Arun; Sapriza, Horacio; Yankov, Vladimir - 2022

Our paper studies the role of the collateral channel for bank credit using confidential bank-firm-loan data. We … estimate that for a 1 percent increase in collateral values, firms pledging real estate collateral experience a 12 basis point …

Persistent link: https://www.econbiz.de/10013289297

Banks, Non Banks, and Lending Standards

Darst, R. Matthew; Refayet, Ehraz; Vardoulakis, Alexandros - 2020

lending to bad projects under loose standards with inefficient collateral liquidation under tight standards …

Persistent link: https://www.econbiz.de/10014048731

Investor Demands for Safety, Bank Capital, and Liquidity Measurement

Passmore, Stuart Wayne; Temesvary, Judit - 2020

We construct a model of a bank's optimal funding choice, where the bank negotiates with both safety-driven short-term bondholders and (mostly) risk-taking long-term bondholders. We establish that investor demands for safety create a negative relationship between the bank's capital choices and...

Persistent link: https://www.econbiz.de/10014048751