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Extensive regulatory changes and technological advances have transformed banking systems to a great extent. Banks have reacted to the challenges posed by the new operating environment by creating new products and expanding their activities to some uncharted business areas. In this paper, we...
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, this book asks: have banks in the UK learned lessons from the financial crisis? Bank learning in the UK after the financial …
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This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G-SIBs) impacts the market value of large banks. We analyze the stock price reactions for the 300 largest banks from 52 countries across 12 relevant regulatory announcement and...
Persistent link: https://www.econbiz.de/10010412297
Stephen Bell and Andrew Hindmoor compare banking systems in the U.S. and UK to those of Canada and Australia and explain why the system imploded in the former but not the latter. Canadian and Australian banks were able to make profits through traditional lending practices, unlike their...
Persistent link: https://www.econbiz.de/10014482081
We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where …
Persistent link: https://www.econbiz.de/10014528381
bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed … to an exogenous rollover risk. We show that the use of repos inflicts two types of indirect (“shadow”) costs on the bank …'s shareholders: first, it induces the bank to maintain higher liquid reserves in order to alleviate the additional default risk …
Persistent link: https://www.econbiz.de/10011293473
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We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … and fragility. Deposit insurance and the expectation of government bailouts increase not only bank risk taking, but also …
Persistent link: https://www.econbiz.de/10010259793