Similar Search Results

Markets, Reserves and Lenders of Last Resort as Sources of Bank Liquidity

Herrala, Risto - Suomen Pankki - 2000

firms that are facing solvency shocks. We apply their framework to banking and extend the framework to admit the analysis of …

Persistent link: https://www.econbiz.de/10005419679

Bankers' compensation: Sprint swimming in short bonus pools?

Jokivuolle, Esa; Keppo, Jussi - Suomen Pankki - 2014

The global financial crisis of 2007–2008 has given rise to new regulatory initiatives to put restrictions on the size and the term of bankers' pay. We revisit both theoretically and empirically the question of whether these regulations are justified. We model bonuses as a series of sequential...

Persistent link: https://www.econbiz.de/10010734434

Should competition policy in banking be amended during crises? Lessons from the EU

Hasan, Iftekhar; Marinc, Matej - Suomen Pankki - 2013

This article investigates the nexus of competition and stability in European banking. It analyzes the European legal … framework for competition policy in banking and several cases that pertain to anti-cartel policy, merger policy, and state …-aid control. It discusses whether and how competition policy should be amended in order to preserve the stability of the banking …

Persistent link: https://www.econbiz.de/10010818987

The Microeconomics of Innovation: Oligopoly Theoretic Analyses with Applications to Banking and Patenting

Kauko, Karlo - Suomen Pankki - 2000

The innovation activities of companies has long been a topic of interest in economics. Game theory models of oligopoly have since the start of the 1980s played a central role in the economics of innovation. In this study three game theory duopoly models are presented and each is used to analyse...

Persistent link: https://www.econbiz.de/10008774218

Moral hazard in the credit market when the collateral value is stochastic

Niinimäki, Juha-Pekka - Suomen Pankki - 2010

This theoretical paper explores the effects of costly and non-costly collateral on moral hazard, when collateral value may fluctuate. Given that all collateral is costly, stochastic collateral will entail the same positive incentive effects as nonstochastic collateral, provided the variation in...

Persistent link: https://www.econbiz.de/10008800750

Essays on the limits of borrowing

Herrala, Risto - Suomen Pankki - 2012

The aim of this research is to provide new insights about the limits of borrowing. The second chapter contributes to the theory of limits of borrowing by a study of LOLRs in an original model. The third chapter introduces a new approach to test and measure the limits of borrowing...

Persistent link: https://www.econbiz.de/10010611650

Do markup dynamics reflect fundamentals or changes in conduct?

Juselius, Mikael; Kim, Moshe; Ringbom, Staffan - Suomen Pankki - 2009

related to multiple and changing equilibria. Results from applying the model to US and five major European banking sectors …

Persistent link: https://www.econbiz.de/10004979444

Risk-adjusted measures of value creation in financial institutions

Milne, Alistair; Onorato, Mario - Suomen Pankki - 2009

Measuring value creation by comparing the RAROC of an exposure (the return on risk capital) with a single institution-wide hurdle rate is inconsistent with the standard theory of financial valuation. We use asset pricing theory to determine the appropriate hurdle rate for such a RAROC...

Persistent link: https://www.econbiz.de/10008509435

ATM networks and cash usage

Snellman, Heli; Virén, Matti - Suomen Pankki - 2006

This paper deals with the issue of how the market structure in banking affects the choice of means of payment. In … incentive to restrict the number of ATMs to a minimum. In general, the number of ATMs depends on competitiveness in the banking …

Persistent link: https://www.econbiz.de/10005207157

Managers and efficiency in banking

Kauko, Karlo - Suomen Pankki - 2007

This paper presents evidence on the impact of managers on cost efficiency in banking. Stochastic frontier analysis is …

Persistent link: https://www.econbiz.de/10005190734