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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
This paper investigates the effects of macroprudential policies on bank risk through a large panel of banks operating … macroprudential tools have a significant impact on bank risk. Second, the responses to changes in macroprudential tools differ among … for bank-specific characteristics, macroprudential policies are more effective in a tightening than in an easing episode …
Persistent link: https://www.econbiz.de/10012953769
This study introduces a real option model to investigate how fiscal policy affects a representative firm's investment decision and to measure its welfare effects. On the one hand, the effects of financial instability on the optimal investment timing and on the probability of default are studied....
Persistent link: https://www.econbiz.de/10012654165
In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax...
Persistent link: https://www.econbiz.de/10012006573
corporate bank debt based on a cross-country study for the United Kingdom (U.K.) and Germany.1 To this end, implied credit risk …
Persistent link: https://www.econbiz.de/10011862434
Under the Single Supervisory Mechanism (SSM) introduced in 2014, the European Central Bank directly supervises …
Persistent link: https://www.econbiz.de/10013415526
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introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails … institutions. Using examples from the recent crisis, we argue that central bank lending is the best response in the former …
Persistent link: https://www.econbiz.de/10013026757