Showing 1 - 10 of 217
deposit customers. In the past, bank regulation has often been blamed for undermining competition and the functioning of … tries to shed some light on the historical development and current state of bank regulation in Germany. In so doing, it … tries to embed the analysis of bank regulation in a more general industrial organization framework. For every regulated …
Persistent link: https://www.econbiz.de/10010986452
deposit customers. In the past, bank regulation has often been blamed for undermining competition and the functioning of … tries to shed some light on the historical development and current state of bank regulation in Germany. In so doing, it … tries to embed the analysis of bank regulation in a more general industrial organization framework. For every regulated …
Persistent link: https://www.econbiz.de/10005022411
strengthening regulation is surprisingly small. First, we emphasize the importance of equity piece retention for the long … transparency relating to effective risk transfer, risk-related management compensation, and credible measurement of rating …, financial intermediaries, whose risk is opaque, may be subjected to higher capital requirements. …
Persistent link: https://www.econbiz.de/10010986376
We examine the impact of so-called Crisis Contracts on bank managers' risktaking incentives and on the probability of … occurs and that leads to a form of collective liability for bank managers. We develop a game-theoretic model of a banking … level of risk. We investigate how the introduction of Crisis Contracts changes the equilibrium level of risk-taking and the …
Persistent link: https://www.econbiz.de/10010958513
swift and massive liquidity provision by central banks in the wake of both crises is, at least partly, to be credited to … previous research on the role of central banks as lenders of last resort in crises and on the real effects of bank lending and … regulation. In part, this is due to their neglect of important regulatory choices, which policy-makers are therefore left to take …
Persistent link: https://www.econbiz.de/10010958553
This paper analyzes the risk properties of typical asset-backed securities (ABS), like CDOs or MBS, relying on a model …, and macro factor dependencies. Using a two-dimensional loss decomposition as a new metric, the risk properties of … Carlo Simulation, we find that the risk properties of ABS differ significantly and systematically from those of straight …
Persistent link: https://www.econbiz.de/10010958590
We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger changes the … distribution of bank sizes and aggregate liquidity needs. Mergers among large banks tend to increase aggregate liquidity needs and … thus the public provision of liquidity through monetary operations of the central bank. …
Persistent link: https://www.econbiz.de/10010958652
Modern bank management comprises both classical lending business and transfer of asset risk to capital markets through … securitization. Sound knowledge of the risks involved in securitization transactions is a prerequisite for solid risk management …. This paper aims to resolve a part of the opaqueness surrounding credit-risk allocation to tranches that represent claims of …
Persistent link: https://www.econbiz.de/10010958755
stock prices of non-financial firms. Bank targets become more profitable and larger, while those of non-financial firms … remain mostly unaffected. A major determinant of the positive bank returns is the degree of opaqueness that characterizes the … institutional setup for supervisory bank merger reviews. The legal design of the supervisory control of bank mergers may therefore …
Persistent link: https://www.econbiz.de/10010958783
, 2007), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback …Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing … between lender of last resort policy and incentives of private banks, determining the aggregate amount of liquidity available …
Persistent link: https://www.econbiz.de/10010958805