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the largest Dutch banks over the period January 2004 to April 2010. The dynamic interrelations among instruments of bank … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …
Persistent link: https://www.econbiz.de/10009018572
have significant effects on loan rates and credit supply, particularly of banks in stressed countries. Central bank … lending to households. Moreover, bank characteristics matter for monetary transmission: loan growth of large banks that are …
Persistent link: https://www.econbiz.de/10011127196
. Negative media reports, falling stock prices, and opaque product information also affect trust in banks. Experiencing a bank … bailout leads to less concern about government intervention, while experience of a bank failure leads to greater concern on …
Persistent link: https://www.econbiz.de/10010726974
This paper analyses the reforms in the architecture of EMU since the eruption of the euro crisis in 2010. We describe major weaknesses in the original set-up of EMU, such as lack of fiscal discipline, diverging financial cycles and competitiveness positions, and a lack of crisis instruments....
Persistent link: https://www.econbiz.de/10010945595
This paper models a financial sector in which there is a feedback between individual bank risk and aggregate funding … premia on that market push up bank risk taking, leading to multiple equilibria. The model identifies shifts among equilibria … as a function of parameter shocks. Measures that reduce individual bank default risk within an equilibrium can actually …
Persistent link: https://www.econbiz.de/10009193243
Using a new, comprehensive database on bank ownership, identifying also the home country of foreign banks, for 137 … countries over the period 1995-2009, this paper provides an overview of foreign bank activity and its impact of financial … development and stability. We document substantial increases in foreign bank presence, especially in emerging markets and …
Persistent link: https://www.econbiz.de/10009390614
indicates that the reduction in bank lending during the crisis was at least partly caused by stricter bank screening and …
Persistent link: https://www.econbiz.de/10008587049
In two-sided markets, one widely observes skewed pricing strategies, in which the price mark-up is much higher on one side of the market than the other. Using a simple model of two-sided markets, we show that, under constant elasticity of demand, skewed pricing is indeed pro?t maximizing. The...
Persistent link: https://www.econbiz.de/10004970699
This paper investigates the determinants of commercial banks' own internal capital targets and potential sensitivity of these levels to the business cycle . World-wide results make clear that banks' own risk is only slightly dependent on the business cycle. Banks tend to hold substantial capital...
Persistent link: https://www.econbiz.de/10004970701
depositors against unexpected liquidity needs, (2) bank runs as an act of collective irrationality by rational depositors, and (3 …) the introduction of deposit insurance as an efficient mechanism to prevent bank runs. Extensions of the Diamond …-Dybvig model deal with the panic explanation for bank runs, the consequences of open economies, and different solutions for …
Persistent link: https://www.econbiz.de/10004970705