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Banking on the Boom, Tripped by the Bust : Banks and the World War I Agricultural Price Shock
Jaremski, Matthew S. - 2018
; ii) the impact of regulation; and iii) how bank closures exacerbated the post-war bust. The boom encouraged new bank … bank portfolios, while higher minimum capital requirements dampened the effects. Banks that responded most aggressively to … the asset boom had a higher probability of closing in the bust, and counties with more bank closures experienced larger …
Persistent link: https://www.econbiz.de/10012480811
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Banks, Liquidity Management and Monetary Policy
Bianchi, Javier - 2014
We develop a new tractable model of banks' liquidity management and the credit channel of monetary policy. Banks finance loans by issuing demand deposits. Because loans are illiquid, deposit transfers across banks must be settled with reserves. Deposit withdrawals are random, and banks manage...
Persistent link: https://www.econbiz.de/10012458178
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Risk Taking, Limited Liability and the Competition of Bank Regulators
Sinn, Hans-Werner - 2001
Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …
Persistent link: https://www.econbiz.de/10012470046
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Liquidity Requirements, Liquidity Choice and Financial Stability
Diamond, Douglas W. - 2016
We study a modification of the Diamond and Dybvig (1983) model in which the bank may hold a liquid asset, some … depositors see sunspots that could lead them to run, and all depositors have incomplete information about the bank's ability to … survive a run. The incomplete information means that the bank is not automatically incentivized to always hold enough liquid …
Persistent link: https://www.econbiz.de/10012456621
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Interest Rate Risk and Capital Adequacy For Traditional Banks and Financial Intermediaries
McCulloch, J. Huston - 1978
of deposit insurance as a function of capital-asset ratio for a bank with demand liabilities and longer term, default …
Persistent link: https://www.econbiz.de/10012478901
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Liquidity Risk and U.S. Bank Lending at Home and Abroad
Correa, Ricardo - 2014
While the balance sheet structure of U.S. banks influences how they respond to liquidity risks, the mechanisms for the effects on and consequences for lending vary widely across banks. We demonstrate fundamental differences across banks without foreign affiliates versus those with foreign...
Persistent link: https://www.econbiz.de/10012458381
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Impacts of the Basle Capital Standard on Japanese Banks' Behavior
Ito, Takatoshi - 1998
This paper examines how the risk based capital standards, the so-called Basle Accord between 1990 and 1993. As the Japanese stock prices fell, banks' latent capital gains, which are part of tier II capital, became smaller. Empirical findings are consistent with a view that banks with lower...
Persistent link: https://www.econbiz.de/10012472084
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Why Does Fast Loan Growth Predict Poor Performance for Banks?
Fahlenbrach, Rüdiger - 2016
From 1973 to 2014, the common stock of U.S. banks with loan growth in the top quartile of banks over a three-year period significantly underperforms the common stock of banks with loan growth in the bottom quartile over the next three years. The benchmark-adjusted cumulative difference in...
Persistent link: https://www.econbiz.de/10012456585
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Does the Geographic Expansion of Bank Assets Reduce Risk?
Goetz, Martin - 2014
We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank …
Persistent link: https://www.econbiz.de/10012457908
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A Note on Liquidity Risk Management
Brunnermeier, Markus K. - 2009
When a firm is unable to roll over its debt, it may have to seek more expensive sources of financing or even liquidate its assets. This paper provides a normative analysis of minimizing such rollover risk, through the optimal dynamic choice of the maturity structure of debt. The objective of a...
Persistent link: https://www.econbiz.de/10012463920