Showing 1 - 10 of 262
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
-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
first comprehensive empirical analysis of bank CoCo issues, a market segment that comprises over 730 instruments totaling …
Persistent link: https://www.econbiz.de/10012942917
We study the transmission mechanisms of liquidity and capital regulations as well as their effects on the economy and welfare. We propose a macro-economic model in which a regulator faces the following trade-off. On the one hand, banking regulations may reduce the aggregate supply of credit. On...
Persistent link: https://www.econbiz.de/10012977251
The global financial crisis has highlighted the limitations of risk-sensitive bank capital ratios. To tackle this … steady state value of the regulatory minima for the two ratios strongly depends on the riskiness and the composition of bank …
Persistent link: https://www.econbiz.de/10012981563
Since the eurozone crisis, there has been a stark divergence between European banks and Japanese banks in their dollar uses and sources. We show that these shifts have implications for the price of dollar funding. We document a "Japan Repo Premium." Japanese banks pay a premium for repos with US...
Persistent link: https://www.econbiz.de/10012924144
. 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
This paper assesses whether compensation practices for bank Chief Executive Officers (CEOs) changed after the Financial …
Persistent link: https://www.econbiz.de/10012957852
We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of an...
Persistent link: https://www.econbiz.de/10012977191
To the best of our knowledge, this is the first study to estimate the effect of liquidity regulation on bank balance … the overall size of bank balance sheets or a detrimental impact on lending to the non-financial sector either through … claims on other financial institutions with cash, central bank reserves and government bonds - and so reduced the …
Persistent link: https://www.econbiz.de/10013045234