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Credit crunch? An empirical test of cyclical credit policy

Herrala, Risto - Suomen Pankki - 2009

household borrowers during a huge cycle and its aftermath yields evidence of time-varying credit policy. We find that the focus …

Persistent link: https://www.econbiz.de/10004979447

Household loan loss risk in Finland – estimations and simulations with micro data

Herrala, Risto; Kauko, Karlo - Suomen Pankki - 2007

extent to which a household’s risk of being financially distressed depends on net income after tax and loan servicing costs …This discussion paper presents a microsimulation model of household distress. We use logit analysis to estimate the …. The impact of assumed macroeconomic shocks on this net income concept is calculated at the household level. The …

Persistent link: https://www.econbiz.de/10005190733

The Credit Channel of Monetary Policy and Housing Markets: International Empirical Evidence

Iacoviello, Matteo; Minetti, Raoul - Suomen Pankki - 2000

This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in the housing market. We argue that the importance of this channel for investment in residential housing is highly dependent on the structural features, and particularly the...

Persistent link: https://www.econbiz.de/10005648926

The lending channel under optimal choice of monetary policy

Kilponen, Juha; Milne, Alistair - Suomen Pankki - 2007

Building on Cecchetti and Li (2005), we show that the bank lending channel affects monetary policy trade-offs only when interest rates affect marginal costs of production (ie when there is a cost channel of monetary policy) in the New Keynesian monetary policy model. In our calibrated model the...

Persistent link: https://www.econbiz.de/10005648972

Effects of moral hazard and monitoring on monetary policy transmission

Topi, Jukka - Suomen Pankki - 2003

This study discusses the effects of financial intermediation, banks’ moral hazard and monitoring on monetary policy transmission in a simple model where borrowers are dependent on loans granted by banks with superior monitoring skills. As distinct from the prior literature on monetary policy...

Persistent link: https://www.econbiz.de/10008774225

Central bank liquidity auction mechanism design and the interbank market

Ollikka, Kimmo; Tukiainen, Janne - Suomen Pankki - 2013

We study whether the mechanism design in the central bank liquidity auctions matters for the interbank money market interest rate levels and volatility. Furthermore, we compare different mechanisms to sell liquidity in terms of revenue, efficiency and auction stage interest rate levels and...

Persistent link: https://www.econbiz.de/10010698833

The adverse selection problem in imperfectly competitive credit markets

Mälkönen, Ville; Vesala, Timo - Suomen Pankki - 2006

concerning the banks. Separation obtains in market segments where the ‘high risk’ borrowers receive credit from their preferred … bank. The ‘low risk’ borrowers choose the ex-ante less-preferred bank that offers loan contracts with lower interest rates …

Persistent link: https://www.econbiz.de/10005648893

Investment-cash flow sensitivities, credit rationing and financing constraints

Becchetti, Leonardo; Castelli, Annalisa; Hasan, Iftekhar - Suomen Pankki - 2008

’ rational decisions based on their credit risk models. We use our qualitative information on firms that were denied credit to …

Persistent link: https://www.econbiz.de/10005648945

The Effects of Competition on Banks’ Risk Taking with and without Deposit Insurance

Niinimäki, Juha-Pekka - Suomen Pankki - 2000

We consider the joint effect of competition and deposit insurance on risk taking by banks when the riskiness of banks … is unobservable to depositors. It turns out that the magnitude of risk taking depends on the type of bank competition. If … the bank is a monopoly or banks compete only in the loan market, deposit insurance has no effect on risk taking. In that …

Persistent link: https://www.econbiz.de/10005648946

Childhood experience of father's job loss and stock market participation

Lehtoranta, Antti - Suomen Pankki - 2014

Using data from the Panel Study of Income Dynamics (PSID), I document that childhood experience of father's job loss decreases the propensity to own stocks as an adult. If this experience takes place at the age of 5–10 years, the probability of owning stocks decreases by 2.9 percentage points...

Persistent link: https://www.econbiz.de/10011097081