Showing 1 - 10 of 67
We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long … leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will …
Persistent link: https://www.econbiz.de/10011256147
Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …
Persistent link: https://www.econbiz.de/10011256455
In this paper, we develop a new capital adequacy buffer model (CABM) which is sensitive to dynamic economic circumstances. The model, which measures additional bank capital required to compensate for fluctuating credit risk, is a novel combination of the Merton structural model which measures...
Persistent link: https://www.econbiz.de/10011255629
We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and … diversification within large banks and financial conglomerates. We discuss the limited value of the normal distribution based … versus large banks. …
Persistent link: https://www.econbiz.de/10011255734
Under the new Capital Accord, banks choose between two different types of risk management systems, the standard or the …
Persistent link: https://www.econbiz.de/10011255855
This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...
Persistent link: https://www.econbiz.de/10011255875
While financial liberalization has in general favorable effects, reforms in countries with poor regulation is often followed by financial crises. We explain this variation as the outcome of lobbying interests capturing the reform process. Even after liberalization, market investors must rely on...
Persistent link: https://www.econbiz.de/10011255930
(NMS) are highly dependent on a few West-European banks and thus vulnerable to contagion effects. The Nordic and Baltic … financial crisis had such a large impact on European banks. …
Persistent link: https://www.econbiz.de/10011255982
stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We … find that the introduction of free banking laws stimulated the creation of new banks and led to more bank failures. Our … states that retained state bank chartering policies. We argue that the fiercer bank competition following the introduction of …
Persistent link: https://www.econbiz.de/10011256043
We develop a model of endogenous lobby formation in which wealth inequalityand political accountability undermine entry and financial development. In-cumbents seek a low level of effective investor protection to prevent potentialentrants from raising capital. They succeed because they can...
Persistent link: https://www.econbiz.de/10011256172