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This paper reviews the market reaction to bank rescue packages announced in six countries between October 2008 and … shareholders as seen in the movement of bank stock prices. Government interventions benefited creditors at the expense of … shareholders, with bank CDS spreads narrowing around the announcements in all cases. Despite a brief positive reaction, bank stock …
Persistent link: https://www.econbiz.de/10013155928
bank segregations are effective in cleaning up balance sheets and promoting bank lending only if they combine … purchases are funded privately; (ii) smaller shares of the originating bank's assets are segregated; and (iii) asset segregation … problem associated with the creation of a bad bank …
Persistent link: https://www.econbiz.de/10012841855
This paper argues that the decline in cross-border banking since 2007 does not amount to a broad-based retreat in international lending ("financial deglobalisation"). We show that BIS international banking data organised by the nationality of ownership ("consolidated view") provide a clearer...
Persistent link: https://www.econbiz.de/10012953022
-dependent bank capital regulation (CR). Bank leverage choices are subject to the risk-return trade-off: high leverage increases … expected return on capital, but also increases return variance and bank failure risk. Financial frictions imply that bank … leverage choices are socially inefficient, providing scope for a welfare-enhancing CR that imposes a cap on bank leverage. The …
Persistent link: https://www.econbiz.de/10012977150
. Many empirical studies suggest that financial reform promoted bank competition in most mature and emerging economies …. However, some earlier studies that adopted conventional approaches to measure competition concluded that bank competition in … specifications and estimation methods. All in all, our analysis suggests that bank lending markets in China have been more …
Persistent link: https://www.econbiz.de/10013059565
next three months. A comprehensive bank-level database reveals the public responded to signals sent by regulators' actions …
Persistent link: https://www.econbiz.de/10014248006
Bank payout policy is strongly affected by regulation and politics, especially for the largest banks. Banks, but not … the Global Financial Crisis, bank regulators' influence on payout policies of the largest banks increases sharply and …
Persistent link: https://www.econbiz.de/10015056096
The paper examines the basic rationale and features of the proposals adopted to separate specific investment and commercial banking activities (Volcker rule, Vickers and Liikanen proposals). In particular, it focuses on the likely implications of such initiatives for: (i) financial stability and...
Persistent link: https://www.econbiz.de/10013081961
A number of countries' authorities put in place bank rescue packages using public funds in response to the global …
Persistent link: https://www.econbiz.de/10013065735
. Specifically, it takes stock of the salient new features of bank and CCP international standards within a unified analytical …
Persistent link: https://www.econbiz.de/10012835929