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The paper develops a simple simulation model of international bank lending to test the extent to which targeting of fixed shares in the stock of total bank claims on a borrower can make lending flows unstable. The model is based on three distinct types of lending strategies: potentially volatile...
Persistent link: https://www.econbiz.de/10005712769
We model the relationship between market power and both loan interest rates and bank risk without placing strong restrictions on the moral hazard problems between borrowers and banks and between banks and a government guarantor. Our results suggest that these relationships hinge on intuitive...
Persistent link: https://www.econbiz.de/10005513044
insurance assessment, while foreign deposits are not. This paper examines the arguments for and against extending this … assessment to foreign branch deposits of insured banks, which in the aggregate amount to more than $200 billion. These arguments … incidence effects on loan and deposit customers in a three sector--money center banks, foreign banks, and regional and smaller …
Persistent link: https://www.econbiz.de/10005368279
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limited short run supply. Using variation in the propensity of local banks to participate in foreign arranged syndicates …
Persistent link: https://www.econbiz.de/10005368252
was caused by an exogenous capital flight triggered by the loss of confidence of foreign investors after the collapse of …, open economy, as a situation in which agents at time 0 learn that at some random future date foreign investors will pull …
Persistent link: https://www.econbiz.de/10005368479
In this paper, we examine the role of "financial factors" in Japan and attempt to gauge their recent impact on the Japanese economy. First, we find that proxies for financial factors enter significantly in behavioral equations for loan standards, loan demand and aggregate demand, although these...
Persistent link: https://www.econbiz.de/10005368499
-specific data set. I find that Japanese banks charge less on loans to Japanese borrowers than do foreign banks, holding constant … foreign banks, suggesting that Japanese banks tend not to distinguish good risks from bad. Taken together, the results suggest …
Persistent link: https://www.econbiz.de/10005368521
Macroeconomists have long recognized that activity-gap measures are unreliable in real time and that this can present serious difficulties for stabilization policy. This paper investigates whether the credit-to-GDP ratio gap, which has been proposed as a reference point for accumulating...
Persistent link: https://www.econbiz.de/10009292960