Showing 1 - 10 of 534
. It is shown that such "regulatory capture" in banking does not imply ineffectual regulation; a "captured" regulator may …
Persistent link: https://www.econbiz.de/10005264136
This paper studies whether compliance with the Basel Core Principles for effective banking supervision (BCPs) is associated with bank soundness. Using data for over 3,000 banks in 86countries, we find that neither the overall index of BCP compliance nor its individual components are robustly...
Persistent link: https://www.econbiz.de/10008470385
This note explores the costs and benefits of different policy options to reduce the risks associated with credit booms, drawing upon several country experiences and the findings from econometric analysis.
Persistent link: https://www.econbiz.de/10011245891
We study versions of a general equilibrium banking model with moral hazard under either constant or increasing returns to scale of the intermediation technology used by banks to screen and/or monitor borrowers. If the intermediation technology exhibits increasing returns to scale, or it is...
Persistent link: https://www.econbiz.de/10009401196
) monetary policy that might have been too loose, (iii) inadequate supervision and regulation. Panel data regressions are …
Persistent link: https://www.econbiz.de/10008727817
This study reinvestigates the theoretical relationship between competition in banking and banks' exposure to risk of failure. There is a large existing literature that concludes that when banks are confronted with increased competition, they rationally choose more risky portfolios. We briefly...
Persistent link: https://www.econbiz.de/10005599568
This paper analyzes how different types of bank funding affect the extent to which banks ration credit to borrowers, and the impact that capital requirements have on that rationing. Using an extension of the standard Stiglitz-Weiss model of credit rationing, unsecured wholesale finance is shown...
Persistent link: https://www.econbiz.de/10010790373
We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks creates moral hazard—increases bank risk taking. However, when a bank’s success depends on both its effort and the overall stability of the banking system, a government’s...
Persistent link: https://www.econbiz.de/10010790390
This paper contributes to the current debate on what role financial stability considerations should play in monetary policy decision and how best to integrate macro-prudential and monetary policy frameworks. The paper broadly supports the view that monetary policy easing induces greater...
Persistent link: https://www.econbiz.de/10011123889
The causes of the global financial crisis were multi-faceted but revealed still unresolved weaknesses in national and international financial oversight and resolution frameworks. In particular, many governments in the crisis-hit countries had to provide unprecedented levels of support to contain...
Persistent link: https://www.econbiz.de/10011245888