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asymmetric information and no excess profits. It captures the possibility of bank runs and business cycle risk; but it ignores …
Persistent link: https://www.econbiz.de/10009320408
Tripartite financial stability arrangement between the Treasury the Bank of England and the FSA, weaknesses in the Bank of …
Persistent link: https://www.econbiz.de/10005791213
This paper examines whether multinational banks have a stabilising or a destabilising role during times of financial distress. With a focus on Europe, it looks at how these banks’ foreign affiliates have been faring during the recent financial crisis. It finds that retail and corporate lending...
Persistent link: https://www.econbiz.de/10008468703
short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …
Persistent link: https://www.econbiz.de/10011165669
to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … credible, while always bailing out causes moral hazard. In equilibrium, the bank chooses above minimum capital and liquidity … is higher for a regulator more concerned about bank failure, and when the bailout penalty for the bank is higher; this …
Persistent link: https://www.econbiz.de/10011083609
To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes in a country rather than to rely entirely on cross-country evidence that can be contaminated by unobserved heterogeneity. However, in developed countries with fairly stable...
Persistent link: https://www.econbiz.de/10011083989