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with construction firms or with retail firms would have produced substantially higher returns on equity with less risk … returns relative to risk, although banks were not necessarily a dominant part of some combinations. These findings suggest … authors stress that bank management contemplating diversification into the commercial sector must be selective about which …
Persistent link: https://www.econbiz.de/10010281866
enjoy a significant reduction in funding costs if affiliation with a bank extended the federal safety net for banks to cover …
Persistent link: https://www.econbiz.de/10010281868
studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … affects bank lending depends on whether the banks are drawing on official-sector liquidity facilities. Third, liquidity …
Persistent link: https://www.econbiz.de/10011340974
heterogeneity in the balance sheet characteristics that affect banks' responses to liquidity risk. Overall, bank balance sheet … studies conducted in 11 countries to explore liquidity risk transmission. Among the main results is, first, that explanatory … power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk …
Persistent link: https://www.econbiz.de/10010397050
bank's contribution to systemic risk (SRISK) at the national and the euro-area level. Our research delivers three main …, an exploration of the drivers of systemic risk shows that a bank's contribution to systemic risk is positively related to …. Since the establishment of the Banking Union in 2014, the European Central Bank (ECB) can impose stricter regulations than …
Persistent link: https://www.econbiz.de/10011642098
listed European banks to measure each bank's contribution to systemic risk (SRISK) at the national and at the Euro Area level … heterogeneity both across countries and banks. Second, we explore the drivers of systemic risk. A bank s contribution to systemic … risk increases in bank size, in bank profitability, and in the share of banks nonperforming loans. It decreases in the …
Persistent link: https://www.econbiz.de/10011301699
In the United States and the European Union (EU), political incentives to oppose cross-border banking have been strong in spite of the measurable benefits to the real economy from breaking down geographic barriers. Even a federal-level supervisor and safety net are not by themselves sufficient...
Persistent link: https://www.econbiz.de/10011460623
acquiring banks value profitable, high-growth, and low-risk targets. We also find that the strength of bank regulation and …We analyze the takeover premiums paid for a sample of European bank mergers between 1997 and 2007. We find that … supervision and of deposit insurance regimes in Europe has measurable effects on takeover pricing. Stricter bank regulatory …
Persistent link: https://www.econbiz.de/10010292291
This paper studies the impact of European bank mergers and acquisitions on changes in key safety and soundness measures … of both acquirers and targets. We find that capitalization, profitability, and liquidity show signs of statistically and … insurance funding regimes tend to result in positive postmerger changes in liquidity and performance. …
Persistent link: https://www.econbiz.de/10010292358
policy tools for dealing with systemic risk. The article also discusses some lingering systemic risk issues, including the … effect of a large bank's failure on financial derivatives markets and the effect of unexpected massive losses at one or more … banks, as well as FDICIA's provisions designed to reduce systemic risk. …
Persistent link: https://www.econbiz.de/10010281874