We examine the factors that determine the likelihood of borrowers using non-traditional mortgages (NTMs) prior to the Great Recession. Borrower choice depends on borrower characteristics such as income, levels of asset holdings, credit score and age and on market factors such as house price...

We provide novel evidence that deposit competition incentivizes banks to securitize loans. Exploiting the state-specific removal of deposit market caps across the U.S. as an exogenous source of competition, we document a 7.1 percentage point increase in the probability that banks securitize...

We provide novel evidence that bank branching deregulation increased securitization in the lead up to the financial crisis. The exogenous state-specific removal of interstate branching restrictions increases the probability that 1) a bank operates an "originate to distribute" model by 7%, and 2)...

Bank resolution is key to avoiding a repetition of the global financial crisis in which failing financial institutions had to be bailed out with taxpayers' money. It permits recapitalizing banks or alternatively winding them down in an orderly fashion without creating systemic risk. Resolution...

The housing and the mortgage lending market are of particular interest to regulators for two reasons. First, housing markets mostly generate a large part of an economy’s GDP. Second, the loans granted to finance residential property account for a major share of an economy's total bank lending....

We empirically document that banks with greater exposure to high home price-to-income or price-to-rent ratio regions before the financial crisis of 2007--2009 have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure during the crisis even after...

We empirically document that banks with greater exposure to high home price-to-income ratio regions in 2005 and 2006 have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure during the last financial crisis even after controlling for capital,...

After the great turmoil of the latest financial crisis, the criticism of the regulatory frameworks became increasingly stronger. The rules that banks needed to comply with are presumed to be procyclical and unable to prevent and mitigate the extent of strong financial and economic cycles. As a...

During the last decade, property prices in Germany steadily appreciated and reached an all-time high in 2022. In the wake of the global financial crisis that was triggered by a housing market bubble in the U.S., banking authorities introduced an additional systemic risk buffer. This buffer aims...

This chapter considers the pre-modern common law rules on the identification of money in mixtures. It takes the decision of the Court of King's Bench in Banks v Whetson (1596) as a starting point for considering the legal structures which tended to ensure the perfect fungibility of commodity...