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On the economics of crisis contracts
Aptus, Elias; Britz, Volker; Gersbach, Hans - Center for Financial Studies - 2014
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 … remuneration of bank managers. We establish conditions under which the introduction of Crisis Contracts will reduce the probability …
Persistent link: https://www.econbiz.de/10010958513
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Lessons from the European financial crisis
Pagano, Marco - Center for Financial Studies - 2014
This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …
Persistent link: https://www.econbiz.de/10010961638
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Countdown for the New Basle Capital Accord: Are German banks ready for the internal ratings-based approach?
Ewert, Ralf; Szczesny, Andrea - Center for Financial Studies - 2001
This paper uses a unique data set from credit files of six leading German banks to provide some empirical insights into their rating systems used to classify corporate borrowers. On the basis of the New Basle Capital Accord, which allows banks to use their internal rating systems to compute...
Persistent link: https://www.econbiz.de/10010958658
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The future of securitization
Franke, Günter; Krahnen, Jan Pieter - Center for Financial Studies - 2008
Securitization is a financial innovation that experiences a boom-bust cycle, as many other innovations before. This paper analyzes possible reasons for the breakdown of primary and secondary securitization markets, and argues that misaligned incentives along the value chain are the primary cause...
Persistent link: https://www.econbiz.de/10010986376
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Organized equity markets in Germany
Theissen, Erik - Center for Financial Studies - 2003
The German financial system is the archetype of a bank-dominated system. This implies that organized equity markets are …
Persistent link: https://www.econbiz.de/10011105003
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Hold-up in multiple banking: Evidence from SME lending
Brunner, Antje; Krahnen, Jan Pieter - Center for Financial Studies - 2010
estimation. The analysis allows to distinguish between rents that accrue due to single bank lending, rents that accrue due to …
Persistent link: https://www.econbiz.de/10010958524
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Bank loans non-linear structure of pricing: Empirical evidence from sovereign debts
Hallak, Issam - Center for Financial Studies - 2003
sample of bank loans contracted or guaranteed by 58 less-developed countries sovereigns in the period from 1983 to 1997. The … higher complexity of the pricing design makes bank loan optimal for lenders on sovereign capital markets, especially relative …
Persistent link: https://www.econbiz.de/10010958528
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Why borrowers pay premiums to larger lenders: Empirical evidence from sovereign syndicated loans
Hallak, Issam - Center for Financial Studies - 2002
All other terms being equal (e.g. seniority), syndicated loan contracts provide larger lending compensations (in percentage points) to institutions funding larger amounts. This paper explores empirically the motivation for such a price design on a sample of sovereign syndicated loans in the...
Persistent link: https://www.econbiz.de/10010958529
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Credit securitization and credit derivatives: Financial instruments and the credit risk management of middle market commercial loan portfolios
Henke, Sabine; Burghof, Hans-Peter; Rudolph, Bernd - Center for Financial Studies - 1998
Banks increasingly recognize the need to measure and manage the credit risk of their loans on a portfolio basis. We address the subportfolio middle market. Due to their specific lending policy for this market segment it is an important task for banks to systematically identify regional and...
Persistent link: https://www.econbiz.de/10010958540
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Do consumers choose the right credit contracts?
Agarwal, Sumit; Chomsisengphet, Souphala; Liu, Chunlin; … - Center for Financial Studies - 2005
financial decisions. We utilize a unique market experiment conducted by a large U.S. bank to assess how systematic and costly … such mistakes are in practice. The bank offered consumers a choice between two credit card contracts, one with an annual …
Persistent link: https://www.econbiz.de/10010958552