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Macroprudential stress tests have been employed by regulators in the United States and Europe to assess and address the solvency condition of financial firms in adverse macroeconomic scenarios. We provide a test of these stress tests by comparing their risk assessments and outcomes to those from...
Persistent link: https://www.econbiz.de/10012459694
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
Persistent link: https://www.econbiz.de/10013480739
This paper analyzes the contagion effects associated with the failure of Silicon Valley Bank (SVB) and identifies bank … held-to-maturity securities, bank size, and cash holdings had a significant impact, while better-quality assets or holdings …
Persistent link: https://www.econbiz.de/10014421197
Inspired by the Silicon Valley Bank run and building on Diamond- Dybvig (1993), we develop a model in which asset price … fluctuations can trigger bank runs. Liquidation amounts to selling assets at their market price. Depositors can buy and hold the …
Persistent link: https://www.econbiz.de/10015421906
bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until … offset if drawdowns are expected to be left on deposit at the same bank, which happened at some of the largest banks during …
Persistent link: https://www.econbiz.de/10014226104
We observe less efficient capital allocation in countries whose banking systems are more thoroughly controlled by tycoons or families. The magnitude of this effect is similar to that of state control over banking. Unlike state control, tycoon or family control also correlates with slower...
Persistent link: https://www.econbiz.de/10012463074
banking systems. Using a new database of individual bank balance sheets, income statements, and branch establishment, we … examine the characteristics that made a bank a more likely target of a takeover by a large branching network, how incumbent … increase efficiency and profitability. Results from survivorship analysis suggest that unit banks competing with branch bank …
Persistent link: https://www.econbiz.de/10012465718
, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk …, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate … governance structure of each bank. Moreover, we show that the relation between bank risk and capital regulations, deposit …
Persistent link: https://www.econbiz.de/10012464532
bank risk taking, commercial bank failure, interest rates on loans, and market structure. We propose a market structure … addition to aggregate shocks to the fraction of performing loans in their portfolio. A nontrivial bank size distribution arises … consistent with untargeted business cycle properties, the bank lending channel, and empirical studies of the role of …
Persistent link: https://www.econbiz.de/10012479380