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Reputational contagion and optimal regulatory forbearance

Morrison, Alan; White, Lucy - 2010

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets and the extent of interbank lending may underestimate the likelihood of contagion because they do not incorporate the fact that banks have a common regulator. In our model, the...

Persistent link: https://www.econbiz.de/10003973340

The macroeconomic effects of a European deposit (re-)insurance scheme

Clemens, Marius; Gebauer, Stefan; König, Tobias - 2020

While the ﬁrst two pillars of the European Banking Union have been implemented, a European deposit insurance scheme (EDIS) is still not in place. To facilitate its introduction, recent proposals argue in favor of a reinsurance scheme. In this paper, we use a regime-switching open-economy DSGE...

Persistent link: https://www.econbiz.de/10012223907

The dynamics of non-performing loans during banking crises : a new database

Ari, Anil; Chen, Sophia; Ratnovski, Lev - 2020

This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990. The data show similarities across crises during NPL build-ups but less so during NPL resolutions. We find a close relationship between NPL problems-elevated and unresolved...

Persistent link: https://www.econbiz.de/10012206258

Policy uncertainty, lender of last resort and the real economy

Jasova, Martina; Mendicino, Caterina; Supera, Dominik - 2021

We show that a reduction in lender of last resort (LOLR) policy uncertainty posi-tively affects bank lending and propagates to investment and employment. We exploita unique policy that reduced uncertainty regarding the availability of future LOLRfunding for banks as a quasi-natural experiment....

Persistent link: https://www.econbiz.de/10012426306

Latent fragility : conditioning banks' joint probability of default on the financial cycle

Bochmann, Paul; Hiebert, Paul; Schüler, Yves; … - 2022

We propose the CoJPoD, a novel framework explicitly linking the cross-sectional and cyclical dimensions of systemic risk. In this framework, banking sector distress in the form of the joint probability of default of financial intermediaries (reflecting contagion from both direct and indirect...

Persistent link: https://www.econbiz.de/10013332831

Funding deposit insurance

Oosthuizen, Dick; Zalla, Ryan - 2022

We present a quantitative model of deposit insurance. We characterize the policymaker's optimal choices of coverage for depositors and premiums raised from banks. Premiums contribute to a deposit insurance fund that lowers taxpayers' resolution cost of bank failures. We find that riskadjusted...

Persistent link: https://www.econbiz.de/10013332900

The macroeconomic effects of a European deposit (re-)insurance scheme

Clemens, Marius; Gebauer, Stefan; König, Tobias - 2023 - April 18, 2023 (revised version)

Recent proposals for a still missing European deposit insurance scheme (EDIS) argue in favor of a reinsurance framework. In this paper, we use a regime-switching open-economy DSGE model with bank default to assess the relative efficiency of such a scheme. We find that reinsurance by EDIS is more...

Persistent link: https://www.econbiz.de/10014316943

Common ownership in the US pharmaceutical industry : a network analysis

Banal-Estañol, Albert; Newham, Melissa; Seldeslachts, Jo - 2020

We investigate patterns in common ownership networks between firms that are active in the US pharmaceutical industry for the period 2004-2014. Our main findings are that "brand firms" - i.e. firms that have R&D capabilities and launch new drugs - exhibit relatively dense common ownership...

Persistent link: https://www.econbiz.de/10012384544

No gender difference in willingness to compete when competing against self

Apicella, Coren L.; Demiral, Elif E.; Mollerstrom, Johanna - 2017

oneself (self-competition), similar to what is found whencompeting against others (other-competition). In one laboratory and … and suggest that these factorscan account for the different findings. Finally, we document that self-competition does … noworse than other-competition in terms of performance boosting. …

Persistent link: https://www.econbiz.de/10011595495

Competition among high-frequency traders, and market quality

Breckenfelder, Johannes - 2019

We study empirically how competition among high-frequency traders (HFTs) affects their trading behavior and market …-frequency competition, and contains an exogenous event - a tick size reform - which we use to disentangle the effects of the rising share of … high-frequency trading in the market from the effects of high-frequency competition. We find that when HFTs compete, their …

Persistent link: https://www.econbiz.de/10012016546