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spread of a bank by about two basis points. We further find that some banks have already reached a size that makes them too …
Persistent link: https://www.econbiz.de/10010298782
, however, the bank can readjust the level of risk after the deposit rate is contracted, market discipline leads to an increase …
Persistent link: https://www.econbiz.de/10011430018
Research is a long journey for a new early career researcher and PhD student. At the early stage, the new researcher needs to build up the "brick" foundation and to communicate well with the advisory team regarding their research progress. Pitching research developed by Faff (2015; 2017) can be a...
Persistent link: https://www.econbiz.de/10015196210
The results of this paper provide empirical evidence that regulatory capital ratios drive bank Credit Default Swaps … weights than imposed as a percentage of Risk-Weighted Assets (RWAs) under Pillar 2. In other words, market discipline on bank …
Persistent link: https://www.econbiz.de/10015199475
How do banks respond to changes in capital requirements as a result of the stress tests? Does the disclosure of stress test results matter? To answer these questions, we study the impact of European stress tests on banks' lending, their corresponding risk-taking, the ensuing effect on their...
Persistent link: https://www.econbiz.de/10013368009
This paper uses regression analysis to compare the market pricing of the default risk of banks to that of other firms. We study how CDS traders discriminate between banks and other type of firms and how their judgement changes over time, in particular, since the start of the recent financial...
Persistent link: https://www.econbiz.de/10013370069
Through the compulsory participation of junior investors in bearing losses of their failing bank, the bailin attempts … to limit bail-outs' side-effects in terms of market discipline, too-big-to-fail, bank-sovereign nexus and risk …-in effects on bank resilience appear mixed. While it incentivises banks to reduce risk-taking (e.g., increasing risk …
Persistent link: https://www.econbiz.de/10013396523
Disclosure is widely regarded as a necessary condition for market discipline in a modern financial sector. However, the determinants of disclosure decisions are still unknown, particularly among banks. This paper investigates the determinants of disclosure by Japanese Shinkin banks in 1996 and...
Persistent link: https://www.econbiz.de/10010315959
higher levels of risk sensitiveness after the entry into force of the first Bank Recovery and Resolution Directive. However … particular regarding bank and market risk variables. Our model also suggests that investors closely monitor senior non …
Persistent link: https://www.econbiz.de/10014564942
banks and impose rate premiums based on each bank's indigenous risk. With these reforms, some very costly imperfections of …
Persistent link: https://www.econbiz.de/10010266510