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Financial constraints, risk taking and firm performance: Recent evidence from microfinance clients in Tanzania

Boermans, Martijn; Willebrands, Daan - de Nederlandsche Bank - 2012

Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints...

Persistent link: https://www.econbiz.de/10010757279

Regulatory Competition and Bank Risk Taking

Agur, Itai - de Nederlandsche Bank - 2009

How damaging is competition between bank regulators? This paper develops a model in which both banks' risk profile and their access to wholesale funding are endogenous. Regulators weigh not only welfare, but also the number of banks under their supervision. Simulations indicate that the gains...

Persistent link: https://www.econbiz.de/10004963332

Peer monitoring or contagion? Interbank market exposure and bank risk

Liedorp, F.R.; Medema, L.; Koetter, M.; Koning, R.H.; … - de Nederlandsche Bank - 2010

We test if interconnectedness in the interbank market is a channel through which banks affect each others riskiness. The evidence is based on quarterly bilateral exposures of all banks active in the Dutch interbank market between 1998 and 2008. A spatial lag model, borrowed from regional...

Persistent link: https://www.econbiz.de/10008468099

Bank earnings management through loan loss provisions: a double-edged sword?

Norden, Lars; Stoian, Anamaria - de Nederlandsche Bank - 2013

We investigate whether banks use of loan loss provisions (LLPs) to manage the level and volatility of their earnings …

Persistent link: https://www.econbiz.de/10010822706

Bank Risk within and across Equilibria

Agur, Itai - de Nederlandsche Bank - 2011

This paper models a financial sector in which there is a feedback between individual bank risk and aggregate funding market problems. Greater individual risk taking worsens adverse selection problems on the market. But adverse selection premia on that market push up bank risk taking, leading to...

Persistent link: https://www.econbiz.de/10009193243

Loan loss provisioning, bank credit and the real economy

Pool, Sebastiaan; Haan, Leo de; Jacobs, Jan - de Nederlandsche Bank - 2014

, inflation, the short-term interest rate, bank lending, as well as loan loss provisioning by banks (as proxy for credit risk …). Our main findings are that: (i) bank lending and loan loss provisioning are important drivers of business cycle … fluctuations, (ii) loan loss provisioning decreases in relative terms as bank lending increases, and (iii) bank lending is …

Persistent link: https://www.econbiz.de/10010945599

The Credit Channel in the Netherlands: Evidence from Bank Balance Sheets

Haan, L. de - de Nederlandsche Bank - 2001

This study contributes to the empirical evidence on the lending channel in the Netherlands using individual bank data. The main conclusion is that a lending channel is operative in the Netherlands. However, it is only operative for unsecured and not for secured lending, possibly because loans...

Persistent link: https://www.econbiz.de/10005021861

Cyclical Patterns in Profits, Provisioning and Lending of Banks

Bikker, J.A.; Hu, H. - de Nederlandsche Bank - 2003

The proposed risk sensitive minimum requirements of the new Basel capital accord have raised concerns about possible (acceleration of) procyclical behaviour of banking, which might threaten macroeconomic stability. This paper analyses the interaction between business cycles and bank behaviour...

Persistent link: https://www.econbiz.de/10005021893

The impact of sovereign debt exposure on bank lending: Evidence from the European debt crisis

Popov, Alexander; Horen, Neeltje van - de Nederlandsche Bank - 2013

Using loan-level data, we find that syndicated lending by European banks with sizeable balance sheet exposures to impaired sovereign debt was negatively affected after the start of the euro area sovereign debt crisis. We also observe a reallocation away from foreign (especially US) markets. The...

Persistent link: https://www.econbiz.de/10010674606

The Level Effect of Bank Lending Standards on Business Lending

Veer, Koen van der; Hoeberichts, Marco - de Nederlandsche Bank - 2013

Do tightenings of bank lending standards permanently reduce bank lending? We construct a measure of a bank's level of lending standards using micro-data from the sample of banks participating in the Eurosystem Bank Lending Survey in The Netherlands and show that this level measure affects...

Persistent link: https://www.econbiz.de/10010822703