Narrow search
Showing 1 - 4 of 4
Cover Image
Bailouts And Moral Hazard: How Implicit Government Guarantees Affect Financial Stability
Mariathasan, Mike; Merrouche, Ouarda; Werger, Charlotte - C.E.P.R. Discussion Papers - 2014
The recent crisis has shown that banks in distress can often expect to benefit from (implicit) government guarantees. This paper analyzes a panel of 781 banks from 90 countries to test whether the expectation of individual and systemic government support induces moral hazard. It shows that banks...
Persistent link: https://www.econbiz.de/10011145454
Cover Image
The Manipulation of Basel Risk-Weights
Mariathasan, Mike; Merrouche, Ouarda - C.E.P.R. Discussion Papers - 2013
In this paper, we examine the relationship between banks’ approval for the internal ratings-based (IRB) approaches of Basel II and the ratio of risk-weighted over total assets. Analysing a panel of 115 banks from 21 OECD countries that were eventually approved for applying the IRB to their...
Persistent link: https://www.econbiz.de/10011083229
Cover Image
Precautionary hoarding of liquidity and inter-bank markets: Evidence from the sub-prime crisis
Acharya, Viral V; Merrouche, Ouarda - C.E.P.R. Discussion Papers - 2012
banks to park liquidity at the central bank rather than lend in the market. We show that following this structural break …, settlement bank liquidity had a precautionary nature in that it rose on calendar days with a large amount of payment activity and … for banks with greater credit risk. We establish that the liquidity demand by settlement banks caused overnight inter-bank …
Persistent link: https://www.econbiz.de/10011084226
Cover Image
The Transmission of Liquidity Shocks: Evidence from Credit Rating Downgrades
Karam, Philippe; Merrouche, Ouarda; Souissi, Moez; … - C.E.P.R. Discussion Papers - 2014
We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the … lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated …
Persistent link: https://www.econbiz.de/10011084686