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Bridging the gap? Government subsidized lending and access to capital

Cortés, Kristle Romero; Lerner, Josh - Federal Reserve Bank of Cleveland - 2012

The consequences of providing public funds to financial institutions remain controversial. We examine the Community Development Financial Institution (CDFI) Fund’s impact on credit union activity, using hitherto little studied U.S. Treasury data. The CDFI Fund grants increase lending at credit...

Persistent link: https://www.econbiz.de/10011133734

Competition or collaboration? The reciprocity effect in loan syndication

Cai, Jian - Federal Reserve Bank of Cleveland - 2009

loans are reciprocal in the sense that lead arrangers also participate in loans that are led by their participant lenders. I … monitoring effort enhances lead arrangers' ability to profit from participating in loans led by others. The model generates ….3% less of the loans with reciprocity than those without reciprocity, (ii) the average interest spread over LIBOR on drawn …

Persistent link: https://www.econbiz.de/10008636221

On SBA-guaranteed lending and economic growth

Craig, Ben R.; William E. Jackson, III; Thomson, James B. - Federal Reserve Bank of Cleveland - 2004

-guarantee program. Using a panel data set of SBA-guaranteed loans we assess whether SBA-guaranteed lending has an observable impact on …

Persistent link: https://www.econbiz.de/10005428333

SBA-loan guarantees and local economic growth

Craig, Ben R.; William E. Jackson, III; Thomson, James B. - Federal Reserve Bank of Cleveland - 2005

-guarantee program. Using a panel data set of SBA-guaranteed loans we assess whether SBA-guaranteed lending has an observable impact on …

Persistent link: https://www.econbiz.de/10005729077

Caught between Scylla and Charybdis? Regulating bank leverage when there is rent seeking and risk shifting

Acharya, Viral V.; Mehran, Hamid; Thakor, Anjan V. - Federal Reserve Bank of Cleveland - 2010

value loans) and managerial rent seeking (e.g., investing in inefficient “pet” projects or simply being lazy and …

Persistent link: https://www.econbiz.de/10008764424

A structural model of contingent bank capital

Pennacchi, George - Federal Reserve Bank of Cleveland - 2010

This paper develops a structural credit risk model of a bank that issues deposits, shareholders' equity, and fixed or floating coupon bonds in the form of contingent capital or subordinated debt. The return on the bank's assets follows a jump-diffusion process, and default-free interest rates...

Persistent link: https://www.econbiz.de/10008486855

Depositor preference and the cost of capital for insured depository institutions

Osterberg, William P.; Thomson, James B. - Federal Reserve Bank of Cleveland - 1994

An analysis of the impact of depositor preference laws on the cost of debt capital for banks and on the value of FDIC deposit guarantees. The authors find that depositor preference laws increase the value of uninsured deposit claims and reduce the size of the FDIC subsidy, but will not affect...

Persistent link: https://www.econbiz.de/10005428234

Loan sales as a response to market-based capital constraints

Carlstrom, Charles T.; Samolyk, Katherine A. - Federal Reserve Bank of Cleveland - 1993

and sell loans to other banks, rather than fund them with deposit liabilities. Private information implies that bankers … can fund local loans only to the extent that their capital can absorb potential losses. Loan sales are effectively a means …

Persistent link: https://www.econbiz.de/10005428239

Optimal financial structure and bank capital requirements: an empirical investigation

Osterberg, William P.; Thomson, James B. - Federal Reserve Bank of Cleveland - 1990

This paper presents an empirical analysis of the determinants of the leverage ratios (the book value of liabilities divided by the total of the book value of liabilities' and the market value of equity) for 232 bank holding companies for December 1986, June 1987, and December 1987. Many...

Persistent link: https://www.econbiz.de/10005428265

Regulatory taxes, investment, and financing decision for insured banks

Li, Anlong; Ritchken, Peter; Sankarasubramanian, L.; … - Federal Reserve Bank of Cleveland - 1993

An investigation of the effects of interest rate and credit risk on optimal capital structure and investment decisions. The authors show that with no uncertainty in interest rates, capital regulation will reduce the risk of the bank's assets, but that under interest rate uncertainty, the impact...

Persistent link: https://www.econbiz.de/10005428271