Showing 1 - 10 of 73
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
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
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
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … requirements can lead to more entry into banking, essentially by reducing the competitive strength of lower quality banks. We also …
Persistent link: https://www.econbiz.de/10011257508
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
. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank … data complementing existing evidence that financial instability is highest when bank control is capturedby small lobbies. …
Persistent link: https://www.econbiz.de/10011256743
We study the effect of going-concern contingent capital on bank risk choice. The possibility of debt for equity …
Persistent link: https://www.econbiz.de/10011256836
in shadow banking. BHCs can increase their fee income by guaranteeing sold projects with a recourse to the bank's balance …Bank holding companies (BHCs) invest in risky projects through bank entities or sell projects for a fee, thus engaging … sheet. When the expected guarantee repayments depend on total bank proceeds (high capital requirements), BHCs have …
Persistent link: https://www.econbiz.de/10011256875
Entry requires external finance, especially for less wealthy entrepreneurs, so poor investor protection limits competition. We model how incumbents lobby harder to block access to finance to entrants when politicians are less accountable to voters. In a broad cross-section of countries and...
Persistent link: https://www.econbiz.de/10011256887
This paper deals with the relation between excessive risk taking and capital structure in banks. Examining a quarterly dataset of U.S. banks between 1993 and 2010, we find that equity is valued higher when more risky portfolios are chosen when leverage is high, and that more risk taking has a...
Persistent link: https://www.econbiz.de/10011257139