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Our study investigates the link between bank lending behavior and macroeconomic uncertainty. We develop a dynamic model of a bank's value maximization that results in a negative relationship between loan to capital ratio and macroeconomic uncertainty. This proposition is tested using a panel of...
Persistent link: https://www.econbiz.de/10005068643
Competition is claimed to be beneficial in development projects promoting micro and small enterprise finance although there are still some doubts whether these loans can be developed into a profitable business. Actually nothing is known about how many MSE banking units optimally should be...
Persistent link: https://www.econbiz.de/10005068666
This paper tests whether an increase in insured deposits causes banks to become more risky. We use variation introduced by the U.S. Emergency Economic Stabilization Act in October 2008, which increased the deposit insurance coverage from $100,000 to $250,000 per depositor and bank. For some...
Persistent link: https://www.econbiz.de/10011128840
behavior of LLP. Further, it is generally less pro–cyclical (although not during the recent economic crisis) in the case of …
Persistent link: https://www.econbiz.de/10011196045
Developed and well regulated financial markets are usually seen as a precondition for an efficient allocation of resources and can foster long term economic growth. This paper explores the institutional determinants for financial development in the countries of the Middle East and North African...
Persistent link: https://www.econbiz.de/10010942859
We put forward a modern version of the 'developmental' view of government-owned banks which shows that the combination of information asymmetries and weak institutions creates scope for such banks to play a growth-promoting role. We present new cross-country evidence consistent with our...
Persistent link: https://www.econbiz.de/10008457139
With banking sectors worldwide still suffering from the effects of the financial crisis, public discussion of plans to …
Persistent link: https://www.econbiz.de/10004963885
findings and considering that the Russian government failed to respond adequately to the 1998 banking crisis, Russia's strong … economic growth since the crisis is a puzzle. The paper attempts to analyze Russia's growth process and to empirically make … visible the impact of the banking crisis. It is found that the growth costs of the crisis may have been even larger than …
Persistent link: https://www.econbiz.de/10005068825
This study is intended to assess the introduction of increased capitalization requirements for Ukrainian insurance firms. To do so, we employ up-to-date frontier efficiency analysis. The analysis suggests that an increase in size occurs not only because of the regulator's requirements, but also...
Persistent link: https://www.econbiz.de/10005068962
With banking sectors worldwide still suffering from the effects of the financial crisis, public discussion of plans to …
Persistent link: https://www.econbiz.de/10010661264