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The authors document leverage, capital and liquidity ratios of banks in Canada. These ratios are important indicators of different types of risk with respect to a bank’s balance-sheet management. Particular attention is given to the observations by different types of banks, including small...
Persistent link: https://www.econbiz.de/10010849976
-09. The performance of the Canadian banking system during this period was relatively strong. Using a case study approach … approach to risk management on the part of the Canadian banking system, an approach that was actively fostered by the domestic …
Persistent link: https://www.econbiz.de/10010722802
Canadian banks. The banking sector in Canada provides a unique setting in which to examine market discipline along with the …
Persistent link: https://www.econbiz.de/10010723573
Persistent link: https://www.econbiz.de/10005808334
trade-off exists between economic efficiency and stability in the banking system: a competitive banking system is more … efficient and therefore important to growth, but market power is necessary for stability in the banking system. That this trade … competition on stability may be manageable through prudential regulation. Neither extreme (perfect competition nor monopoly) is …
Persistent link: https://www.econbiz.de/10005808358
The author develops a dynamic model of banking competition to determine which capital instrument is most effective in … incorporate charter value and competition for depositors into their risk-taking decision. The paper's main finding is that …
Persistent link: https://www.econbiz.de/10005808365
The author documents the use by Canadian banks of subordinated debt (SD) as a capital instrument. He reviews the economic benefits of this asset as a mechanism for market discipline and highlights academic and policy research over the past 20 years. The author provides both qualitative and...
Persistent link: https://www.econbiz.de/10005808400
The Basel capital framework plays an important role in risk management by linking a bank's minimum capital requirements to the riskiness of its assets. Nevertheless, the risk estimates underlying these calculations may be imperfect, and it appears that a cyclical bias in measures of...
Persistent link: https://www.econbiz.de/10008502640
Two models of default risk are prominent in the financial literature: Merton's structural model and Altman's non-structural model. Merton's structural model has the benefit of being responsive, since the probabilities of default can continually be updated with the evolution of firms' asset...
Persistent link: https://www.econbiz.de/10005162405
restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital … authors show that an economy with blockholders often leads to a more competitive banking sector. Hence, a restriction on the …
Persistent link: https://www.econbiz.de/10005162422