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-and-soundness supervision—that is, for the purposes of calculating a bank’s regulatory capital. The argument is straightforward, although …
Persistent link: https://www.econbiz.de/10005065523
to construct quarterly gross credit flows (credit expansion and credit contraction series) for the U.S. banking system … during the period 1999:Q1-2008:Q4 and provide new evidence on changes in lending. We show that credit expansion, as defined … in this paper, began declining during the first half of 2008 while credit contraction began steeply increasing only …
Persistent link: https://www.econbiz.de/10005352954
We investigate the pairwise correlations of 11 U.S. fixed income yield spreads over a sample that includes the Great Financial Crisis of 2007-2009. Using cross-sectional methods and non- parametric bootstrap breakpoint tests, we characterize the crisis as a period in which pairwise correlations...
Persistent link: https://www.econbiz.de/10010607625
This paper proposes a model of international trade with capital accumulation and financial intermediation. This is … achieved by embedding the Melitz (2003) model into an incomplete-markets neoclassical framework with an endogenous credit … firms’ net worth and capital stocks. We use the model to examine the differential effects of financial and non …
Persistent link: https://www.econbiz.de/10011027340
This paper recognizes two main factors that cause the capital requirement to affect the weighted average cost of … capital and hence the investment behavior of banks: underpriced debt resulting from the deposit insurance and information … information asymmetry, equity financing is expensive. This paper finds that banks constrained by the tightened capital requirement …
Persistent link: https://www.econbiz.de/10005707667
Based on a switching-cost model, we examine empirically the hypotheses that bank loan mark-ups are countercyclical and asymmetric in their responsiveness to recessionary and expansionary impulses. The first econometric model treats changes in the mark-up as a continuous variable. The second...
Persistent link: https://www.econbiz.de/10005360605
crisis and show their unusual non-resiliency, which depends in part on the global nature of the economic recession, but also … capital that occurred in the source countries during the crisis. …
Persistent link: https://www.econbiz.de/10009357967
Forecasting is a daunting challenge for business economists and policymakers, often made more difficult by pervasive uncertainty. No such uncertainty is more difficult than projecting the reaction of policymakers to major shifts in the economy. We explore the process by which the FOMC came to...
Persistent link: https://www.econbiz.de/10009366918
violate either the letter or spirit of the law by lending to undercapitalized banks? 2) Did Federal Reserve credit constitute … statutory limits during the recent financial crisis, recession and recovery periods. In most cases, the number of days that … Federal Reserve credit was extended to an undercapitalized or critically undercapitalized depository institution was …
Persistent link: https://www.econbiz.de/10010551338
Presented at the Bowling Green Area Chamber of Commerce. February 24, 2011.
Persistent link: https://www.econbiz.de/10010727289