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Financial Intermediation and Entry Deterrence

Jain, Neelam; Jeitschko, Thomas D.; Mirman, Leonard J. - Tinbergen Instituut - 2001

In this paper, we analyze the interaction between an incumbent firm's financial contract with abank and its product market decisions in the face of the threat of entry, in a dynamic model.The main results of the paper are: there exists a separating equilibrium with no limit pricing; thelow-cost...

Persistent link: https://www.econbiz.de/10011255478

Risk Diversification by European Financial Conglomerates

Slijkerman, Jan Frederik; Schoenmaker, Dirk; Vries, … - Tinbergen Instituut - 2005

We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from diversification within large banks and financial...

Persistent link: https://www.econbiz.de/10011255734

The Political Economy of Financial Systems

Haber, Stephen; Perotti, Enrico - Tinbergen Instituut - 2008

of capital markets and banking systems as well as the distribution of access to external finance across firms …

Persistent link: https://www.econbiz.de/10011255875

Banking Unions: Distorted Incentives and Efficient Bank Resolution

Zoican, Marius A.; Górnicka, Lucyna A. - Tinbergen Instituut - 2013

A banking union limits international bank default contagion, eliminating inefficient liquidations. For particularly low … moderate moral hazard, as the banking union encourages risk taking by systemic institutions. If banks hold opaque assets, the … net welfare effect of a banking union can be negative. Restricting the banking union mandate restores incentives …

Persistent link: https://www.econbiz.de/10011255924

The Political Economy of Finance

Perotti, Enrico - Tinbergen Instituut - 2013

This survey reviews how a recent political economy literature helps explaining variation in governance, competition, funding composition and access to credit. Evolution in political institutions can account for financial evolution, and appear critical to explain rapid changes in financial...

Persistent link: https://www.econbiz.de/10011256233

ATM networks and cash usage

Snellman, Heli; Virén, Matti - Suomen Pankki - 2006

This paper deals with the issue of how the market structure in banking affects the choice of means of payment. In … incentive to restrict the number of ATMs to a minimum. In general, the number of ATMs depends on competitiveness in the banking …

Persistent link: https://www.econbiz.de/10005207157

Screening in the credit market when the collateral value is stochastic

Niinimäki, Juha-Pekka - Suomen Pankki - 2009

This theoretical paper explores screening with loan collateral when both the collateral value and the probability of project success fluctuate. Some model versions challenge the classic findings of Bester (1985) by showing that high-risk borrowers may in such case be more willing to pledge...

Persistent link: https://www.econbiz.de/10005014554

Essays on the limits of borrowing

Herrala, Risto - Suomen Pankki - 2012

The aim of this research is to provide new insights about the limits of borrowing. The second chapter contributes to the theory of limits of borrowing by a study of LOLRs in an original model. The third chapter introduces a new approach to test and measure the limits of borrowing...

Persistent link: https://www.econbiz.de/10010611650

Risk-adjusted measures of value creation in financial institutions

Milne, Alistair; Onorato, Mario - Suomen Pankki - 2009

Measuring value creation by comparing the RAROC of an exposure (the return on risk capital) with a single institution-wide hurdle rate is inconsistent with the standard theory of financial valuation. We use asset pricing theory to determine the appropriate hurdle rate for such a RAROC...

Persistent link: https://www.econbiz.de/10008509435

Do markup dynamics reflect fundamentals or changes in conduct?

Juselius, Mikael; Kim, Moshe; Ringbom, Staffan - Suomen Pankki - 2009

related to multiple and changing equilibria. Results from applying the model to US and five major European banking sectors …

Persistent link: https://www.econbiz.de/10004979444