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After August 2007 the plumbing system that supplied banks with wholesale funding, the interbank market, failed because toxic assets obstructed the pipes. Banks were forced to squeeze liquidity in a �lemons market� or to ask for liquidity �on tap� from central banks. This...
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existing empirical evidence on their effectiveness, focusing on those adopted by the European Central Bank and by the Federal … former, the central bank can use communication to steer interest rates and to restore confidence in the financial markets …
Persistent link: https://www.econbiz.de/10009320180
We use Italian data on bank lending to firms to study the transmission of shocks affecting bank balance sheets to the …-in-difference approach because: a large number of firms in Italy borrow from more than one bank; the shocks to the wholesale funding market … significantly affect their lending, the deterioration of bank capitalization as proxied by charge-offs and profitability had a …
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shocks. Much less is known about how lending relationships and bank-specific characteristics affect the functioning of the … investigate how bank-specific characteristics (size, liquidity, capitalization, funding structure) and the bank-firm relationship …
Persistent link: https://www.econbiz.de/10009364552
Using 11 years of monthly Italian bank-by-bank data, this paper correlates the bilateral amounts and the identity of …
Persistent link: https://www.econbiz.de/10009364553
We examine the effects of the government guarantee schemes for bank bonds adopted in the aftermath of the Lehman … the issuing bank or of the bond itself. …
Persistent link: https://www.econbiz.de/10008626021
The paper explores the view that the Asian currency and financial crises in 1997 and 1998 reflected structural and policy distortions in the countries of the region, even though market overreaction and herding caused the plunge of exchange rates, asset prices and economic activity to be more...
Persistent link: https://www.econbiz.de/10005111544