Purpose: SME sector credit risk has received attention in research from several dimensions of the financial system. SME sector's funding is mainly supplied by financial institutions and SME sector is both diversified and large sector in both well developed and less developed economies. Specific...

The Basel Committee proposed the Net Stable Funding Ratio (NSFR) to curb excessive maturity mismatch of the banking sector. However, it remains to be ascertained as to what are the financial and real effects of the NSFR on banks' credit quality, investment, and the pass-through of monetary...

I show how capital regulations, by imposing a low or zero cost on undrawn credit lines, can lead to ex post misallocation of credit across different borrowers following a market shock. This effect is in addition to the liquidity impact of credit line drawdowns highlighted by previous literature....

We analyze how the inflow of liquidity through TARP funds in the wake of the 2007/2008 financial crisis impacted banks' interbank market activity. We show that TARP banks increased interbank market activity statistically and economically in a very significant way. Their interbank lending...

Purpose: SME sector credit risk has received attention in research from several dimensions of the financial system. SME sector's funding is mainly supplied by financial institutions and SME sector is both diversified and large sector in both well developed and less developed economies. Specific...

Calvin's view on the legitimacy of interest has had a great impact on the economic development of Western society. Although Calvin took a fundamentally positive attitude to interest, he also proposed several restrictions on the charging of interest. In this article, we investigate the relevance...

Robert C. Merton is the School of Management Distinguished Professor of Finance at Massachusetts Institute of Technology, and the John and Natty McArthur University Professor Emeritus at Harvard University. Merton received the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for a new...

Purpose: This paper aims to offer an empirical study of the impact of institutional quality on the banking system risk and credit risk. Design/methodology/approach: Applying cross-sectional dependent tests and stationary tests to check the property of our sample, the panel corrected standard...

This paper analyzes the impact of US firms' equity risk on bank lending standards and on the macroeconomy for two groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of banks tightening their lending standards on commercial and...

This paper proposes the inflow into non-performing loans (INPL) ratio, defined as the change in the stock of non-performing loans adjusted by write-offs and standardized by loans, as the main measure to be used for modelling the credit risk of the Chilean banking system. In particular, the paper...