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Carletti, Elena; Hartmann, Philipp; Spagnolo, Giancarlo - European Central Bank - 2003

JEL Classification: D43, G21, G28, L13

Persistent link: https://www.econbiz.de/10005222334

Optimal monetary policy in a model of the credit channel

De Fiore, Fiorella; Tristani, Oreste - European Central Bank - 2009

We consider a simple extension of the basic new-Keynesian setup in which we relaxthe assumption of frictionless financial markets. In our economy, asymmetricinformation and default risk lead banks to optimally charge a lending rate above therisk-free rate. Our contribution is threefold. First,...

Persistent link: https://www.econbiz.de/10005866631

The economic impact of merger control: what is special about banking?

Carletti, Elena; Hartmann, Philipp; Ongena, Steven - European Central Bank - 2007

-oriented regime for merger control increases banks’ stock prices, whereas it decreases those of non-financial firms. Moreover, bank … merger targets become more profitable and larger. A major determinant of the positive bank returns, after controlling inter … institutional setup for supervisory bank merger reviews. Thus strengthening competition policy in banking may generate positive …

Persistent link: https://www.econbiz.de/10005530800

Growth strategies and value creation: what works best for stock exchanges?

Hasan, Iftekhar; Schmiedel, Heiko; Song, Liang - European Central Bank - 2010

protection, accounting standards and capital market development in the partner exchange’s country, the higher the merger and …

Persistent link: https://www.econbiz.de/10008587761

Interbank market integration under asymmetric information

Freixas, Xavier; Holthausen, Cornelia - European Central Bank - 2001

While domestic interbank markets are often considered to work in an efficient way, cross-country bank lending appears to be subjected to market imperfections leading to persistent interest rate differentials. In a model where banks need to cope with liquidity shocks by borrowing or by...

Persistent link: https://www.econbiz.de/10005344929

Optimal monetary policy in a model of the credit channel

De Fiore, Fiorella; Tristani, Oreste - European Central Bank - 2009

We consider a simple extension of the basic new-Keynesian setup in which we relax the assumption of frictionless financial markets. In our economy, asymmetric information and default risk lead banks to optimally charge a lending rate above the risk-free rate. Our contribution is threefold....

Persistent link: https://www.econbiz.de/10005002754

Central bank transparency and private information in a dynamic macroeconomic model

Pearlman, Joseph G. - European Central Bank - 2005

We investigate the role of economic transparency within the framework of one of Townsend’s models of ‘forecasting the forecasts of others’. The equilibrium has the property that ‘higher order beliefs’ are coordinated into a finite-dimensional setup that is amenable to address monetary...

Persistent link: https://www.econbiz.de/10005162888

Liquidity, information, and the overnight rate

Ewerhart, Christian; Cassola, Nuno; Ejerskov, Steen; … - European Central Bank - 2004

We model the interbank market for overnight credit with heterogeneous banks and asymmetric information. An unsophisticated bank just trades to compensate its liquidity imbalance, while a sophisticated bank will exploit its private information about the liquidity situation in the market. It is...

Persistent link: https://www.econbiz.de/10005033421

Booms and systemic banking crises

Boissay, Frederic; Collard, Fabrice; Smets, Frank - European Central Bank - 2013

The empirical literature on systemic banking crises (SBCs) has shown that SBCs are rare events that break out in the midst of credit intensive booms and bring about particularly deep and long-lasting recessions. We attempt to explain these phenomena within a dynamic general equilibrium model...

Persistent link: https://www.econbiz.de/10010686805

Financial imbalances and financial fragility

Boissay, Frédéric - European Central Bank - 2011

This paper develops a general equilibrium model to analyze the link between financial imbalances and financial crises. The model features an interbank market subject to frictions and where two equilibria may (co-)exist. The normal times equilibrium is characterized by a deep market with highly...

Persistent link: https://www.econbiz.de/10008922897