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Macroprudential policy and the revolving door of risk : lessons from leveraged lending guidance

Kim, Sooji; Plosser, Matthew C.; Santos, João A. C. - 2017

We investigate the U.S. experience with macroprudential policies by studying the interagency guidance on leveraged lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued important clarifications. It also triggered a migration of...

Persistent link: https://www.econbiz.de/10011657569

The Optimal Response of Bank Capital Requirements to Credit and Risk in a Model with Financial Spillovers

Occhino, Filippo - 2017

banks' financial distortions, which in turn increase with banks' credit risk. Higher capital requirements dampen the current … supply of banks' credit, but mitigate banks' future financial distortions. Capital requirements should be raised in response … to both an expansion of banks' credit supply and an increase in the expected future credit risk of banks. They should be …

Persistent link: https://www.econbiz.de/10012953076

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

parameters affect bank credit supply …

Persistent link: https://www.econbiz.de/10013065553

The Surprising Use of Credit Scoring in Small Business Lending by Community Banks and the Attendant Effects on Credit Availability and Risk

Berger, Allen N. - 2014

The literature has documented a positive relationship between the use of credit scoring for small business loans and … small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the … deficiencies in the extant literature by employing data from a new survey on the use of credit scoring in small business lending …

Persistent link: https://www.econbiz.de/10013070995

Systemic Risk in Commercial Bank Lending

Roesch, Daniel - 2014

This paper develops a bank model for financial systemic risk in bank lending. The model analyzes the impact of a financial institution failure on the distribution of losses in the financial system. The fundamental idea is that bank loss rates may be decomposed into a level, momentum, systematic...

Persistent link: https://www.econbiz.de/10013058030

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

This paper examines consistency in the estimates of probability of default (PD) and loss given default (LGD) that nine large U.S. banks assign to syndicated loans for regulatory capital purposes. Using internal bank data on loans that had PDs and LGDs assigned by more than one bank, we find...

Persistent link: https://www.econbiz.de/10013061902

The real estate and credit bubble : evidence from Spain

Akin, Ozlem; García Montalvo, José; García Villar, Jaume - In: SERIEs : Journal of the Spanish Economic Association 5 (2014) 2/3, pp. 223-243

We analyze the determinants of real estate and credit bubbles using a unique borrower-lender matched dataset on … mortgage loans in Spain. The dataset contain real estate credit and price conditions (loan principal and spread, and the … contract) and the lender identity, over the last credit boom and bust. We find that lending standards are softer in the boom …

Persistent link: https://www.econbiz.de/10010422334

The impact of capital ratio on lending of EU banks - the role of bank specialization and capitalization

Olszak, Małgorzata; Pipień, Mateusz; Roszkowska, Sylwia - 2015

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between bank loan growth and bank capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative...

Persistent link: https://www.econbiz.de/10012030770

The Impact of Expanded Bank Powers on Loan Portfolios Decisions

Torna, Gokhan - 2018

This study takes advantage of a natural experiment to trace out the supply-side effects of nontraditional assets on loan portfolios. The natural experiment centers on the recent accounting standards that require banks to transfer off-balance sheet securitized assets onto balance sheets,...

Persistent link: https://www.econbiz.de/10012937946

The Impact of Bank Herding on Systemic Risk

Heo, Yuna - 2019

We find that the level of bank herding in real estate loans during boom period is substantially higher than the level of bank herding in commercial and industrial loans or consumer loans. More importantly, we find that bank herding significantly increases systemic risk. In particular, herding in...

Persistent link: https://www.econbiz.de/10012889250