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Repo funding and internal capital markets in the financial crisis

Düwel, Cornelia - Deutsche Bundesbank - 2013

This paper examines how the exposure of German parent banks to the disruptions on sale and repurchase markets (repo markets) during the financial crisis has affected their provision of funds to their foreign branches and subsidiaries via bank-internal capital markets. The collapse of the...

Persistent link: https://www.econbiz.de/10010984715

Moral hazard and bail-out in fiscal federations: evidence for the German Länder

Heppke-Falk, Kirsten H.; Wolff, Guntram B. - Deutsche Bundesbank - 2007

(Länder) to a bail-out, the interest payments-to-revenue ratio. While risk premia measured in the German sub-national bond … receiving a bail-out payment. Quantitatively, the effects are, however, quite small. Our findings are robust to a variety of … markets' bail-out expectations. In sum, our results indicate significant investor moral hazard in the sub-national German bond …

Persistent link: https://www.econbiz.de/10005083197

Financial Liberalization and Business Cycles: The Experience of Countries in the Baltics and Central Eastern Europe

Vinhas de Souza, Lúcio - Deutsche Bundesbank - 2004

This paper extends the work of Kaminsky and Schmukler (2003) to the Baltic and Central Eastern European future Member States of the European Union, to test if the same short-run increase in cyclical volatility arising from financial integration is observed in this specific sample of ?emerging...

Persistent link: https://www.econbiz.de/10005083257

Recent developments in quantitative models of sovereign default

Stähler, Nikolai - Deutsche Bundesbank - 2011

The current crisis and discussions, in the euro area in particular, show that sovereign debt crises/defaults are no longer restricted to developing economies. After crises in many Latin American countries, the literature on quantitative dynamic macro-models of sovereign default has been...

Persistent link: https://www.econbiz.de/10009283656

Multinational firms, exclusivity, and the degree of backward linkages

Lin, Ping; Saggi, Kamal - Deutsche Bundesbank - 2005

This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the local industry. The model endogenizes the multinational's choice between anonymous market...

Persistent link: https://www.econbiz.de/10005083239

Changing forces of gravity: How the crisis affected international banking

Buch, Claudia M.; Neugebauer, Katja; Schröder, Christoph - Deutsche Bundesbank - 2013

The global financial crisis has brought to an end a rather unprecedented period of banks' international expansion. We analyze the effects of the crisis on international banking. Using a detailed dataset on the international assets of all German banks with foreign affiliates for the years...

Persistent link: https://www.econbiz.de/10010984721

Competition for internal funds within multinational banks: Foreign affiliate lending in the crisis

Düwel, Cornelia; Frey, Rainer - Deutsche Bundesbank - 2012

We investigate how the lending activities of a multinational bank's affiliates located abroad are affected by funding difficulties in view of the financial crisis. For this, we consider transaction-induced changes in long-term lending to the private sector of 40 countries by the affiliates of...

Persistent link: https://www.econbiz.de/10010984726

Optimal sovereign default

Adam, Klaus; Grill, Michael - Deutsche Bundesbank - 2013

When is it optimal for a government to default on its legal repayment obligations? We answer this question for a small open economy with domestic production risk in which contracting frictions make it optimal for the government to finance itself by issuing non-contingent debt. We show that...

Persistent link: https://www.econbiz.de/10010957095

International banking and liquidity risk transmission: Lessons from across countries

Buch, Claudia M.; Goldberg, Linda - Deutsche Bundesbank - 2014

Activities of international banks have been at the core of discussions on the causes and effects of the international financial crisis. Yet, we know little about the actual magnitudes and mechanisms for transmission of liquidity shocks through international banks, including the reasons for...

Persistent link: https://www.econbiz.de/10010957099

Current account adjustment in EU countries: Does euro-area membership make a difference?

Herrmann, Sabine; Jochem, Axel - Deutsche Bundesbank - 2013

The paper evaluates current account dynamics in countries with different exchange rate regimes within the EU. In this, the empirical analysis explicitly differentiates between countries with a flexible and a fixed exchange rate regime and members of a monetary union. In addition, we model the...

Persistent link: https://www.econbiz.de/10010957101