Showing 1 - 10 of 117
The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers …. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in … Europe. We argue that cyclical and structural factors have altered the structure, cost, and composition of funding for …
Persistent link: https://www.econbiz.de/10011242310
Banks’ liquidity holdings are comfortably above legal or prudential requirements in most Central American countries …. While good for financial stability, high systemic liquidity may nonetheless hinder monetary policy transmission and … precautionary liquidity buffers is associated with measures of bank size, profitability, capitalization, and financial development …
Persistent link: https://www.econbiz.de/10011142020
As part of Basel III reforms, the NSFR is a new prudential liquidity rule aimed at limiting excess maturity … transformation risk in the banking sector and promoting funding stability. The revised package has been issued for public … introduction of the NSFR. Additionally, by comparing the NSFR to other structural funding mismatch indicators, we find that the …
Persistent link: https://www.econbiz.de/10011142026
particular, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of …. Using data from the syndicated loan market, we exploit variation in banks’ reliance on wholesale funding and their … structural liquidity positions in 2007Q2 to estimate the impact of exposure to market freezes during 2007–08 on the supply of …
Persistent link: https://www.econbiz.de/10011142046
liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare …, with their benefits turning into costs beyond a certain requirement threshold. By contrast, liquidity requirements reduce … lending, efficiency and welfare significantly. The costs of high capital and liquidity requirements represent a lower bound on …
Persistent link: https://www.econbiz.de/10011142059
This paper provides a definition of global liquidity consistent with its meaning as the “ease of financing†in … also the cyclical impact of global liquidity, with sensitivities of flows to banks decreasing with stronger macroeconomic …
Persistent link: https://www.econbiz.de/10011142075
We examine the impact of banks’ exposure to market liquidity shocks through wholesale funding on their supply of … funding curtailed their credit significantly more than retail-funded banks during the crisis. The demand for mortgage credit … findings, we exploit the heterogeneity in mortgage funding across U.S. Metropolitan Statistical Areas (MSAs) and find that …
Persistent link: https://www.econbiz.de/10011142090
the existence of the structural liquidity in the banking system; bank’s unwillingness to lock up liquidity in the NBP … also shows the effectiveness of the NBP’s responses to the financial crisis and structural liquidity surplus. …
Persistent link: https://www.econbiz.de/10011142119
countries’ sovereign CDS spreads are largely driven by global investor sentiment, macroeconomic fundamentals and liquidity … drop in liquidity and a spike in risk aversion contributed to high spreads in Central and Eastern and South …
Persistent link: https://www.econbiz.de/10011142168
NFCs, who channel capital market financing into the domestic banking system, thereby influencing funding conditions and …
Persistent link: https://www.econbiz.de/10011142187