Similar Search Results

Are adverse selection models of debt robust to changes in market structure?

Vauhkonen, Jukka - Suomen Pankki - 2003

Many adverse selection models of standard one-period debt contracts are based on the following seemingly innocuous assumptions. First, entrepreneurs have private information about the quality of their return distributions. Second, return distributions are ordered by the monotone likelihood-ratio...

Persistent link: https://www.econbiz.de/10005423696

Equilibrium in financial markets with adverse selection

Takalo, Tuomas; Toivanen, Otto - Suomen Pankki - 2003

We study a financial market adverse selection model where all agents are endowed with initial wealth and choose to invest as entrepreneurs or financiers, or not to invest. We show that often a lack of outside finance leads to the emergence of financial markets where availability of outside...

Persistent link: https://www.econbiz.de/10005648911

Adverse selection and financing of innovation: is there a need for R&D subsidies?

Takalo, Tuomas; Tanayama, Tanja - Suomen Pankki - 2008

We study the interaction between private and public funding of innovative projects in the presence of adverse-selection based financing constraints. Government programmes allocating direct subsidies are based on ex-ante screening of the subsidy applications. This selection scheme may yield...

Persistent link: https://www.econbiz.de/10005648936

Liquidity and market efficiency : alive and well?

Liikanen, Erkki; Jylhä, Petri; Pennacchi, George G.; … - Joint Conference with the Bank of Finland in Helsinki …; … - 2015

liquidity and market efficiency. The one-day program consisted of an opening speech, six presentations, including three keynotes …

Persistent link: https://www.econbiz.de/10011414459

Shadow banking : financial intermediation beyond banks

Adrian, Tobias; Chrétien, Edouard; Chui, Michael; … - Shadow Banking: Financial Intermediation beyond Banks …; … - 2018

Persistent link: https://www.econbiz.de/10011790739

The rigidity bias

Herrala, Risto - Suomen Pankki - 2003

We study the basic economic problem of choice between long-term and short-term commitments under a general characterization of uncertainty (aggregate uncertainty). When contingencies are contractible, a perfect market of Arrow-Debreau contingent claims implements the social optimum. When...

Persistent link: https://www.econbiz.de/10005207147

Combining liquidity usage and interest rates on overnight loans: an oversight indicator

Laine, Tatu; Nummelin, Tuomas; Snellman, Heli - Suomen Pankki - 2011

This study utilises payment system data to analyse market participants’ liquidity usage and to trace interest rates … paid on overnight loans. Our aim is to examine how liquidity usage has changed during the years 2006–2/2011 and to combine …

Persistent link: https://www.econbiz.de/10009368523

Gridlock Resolution in Interbank Payment Systems

Bech, Morten L.; Soramäki, Kimmo - Suomen Pankki - 2001

effective in reducing queuing in the systems at all levels of liquidity, but in particular when intra-day liquidity is scarce. …

Persistent link: https://www.econbiz.de/10005190740

Markets, Reserves and Lenders of Last Resort as Sources of Bank Liquidity

Herrala, Risto - Suomen Pankki - 2000

We study the long standing issue of whether markets can supply banks with sufficient liquidity or whether markets … model of Holmström and Tirole (1998) on the supply of liquidity to firms. H&Ts original model analyses liquidity supply to … problems associated with transitory liquidity outflows, even absent any change in a bank's value. Our premise is that the scope …

Persistent link: https://www.econbiz.de/10005419679

The Overnight Rate of Interest under Averaged Reserve Requirements

Välimäki, Tuomas - Suomen Pankki - 1998

Averaging the reserve requirement is often considered an efficient way to reduce volatility at the very short end of the money market yield curve. The Bank of Finland began to apply an averaging provision at the beginning of October 1995. Notably, the volatility of the overnight rate of interest...

Persistent link: https://www.econbiz.de/10005423707