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disciplining banks. Under our proposal, investors buy the subdebt of a bank only if they receive favourable information about the … bank, and the bank is subject to a regulatory examination if it fails to issue subdebt. By forcing banks to be examined …-destroying actions to benefit themselves, but may also encourage banks to lower asset risk. It shows that subdebt regulation and bank …
Persistent link: https://www.econbiz.de/10013118815
We investigate the effects of credit ratings-contingent financial regulation on foreign bank lending behavior. We … examine the sensitivity of international bank flows to debtor countries' sovereign credit rating changes before and after the …
Persistent link: https://www.econbiz.de/10012993692
This study proposes an information asymmetry hypothesis to examine why bank credit ratings vary among countries even … when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The …
Persistent link: https://www.econbiz.de/10013107580
Formal enforcement actions issued against banks for violations of laws and regulations related to safety and soundness can theoretically have both positive and negative effects on the terms of lending. Using hand-collected data on such enforcement actions issued against U.S. banks, we show that...
Persistent link: https://www.econbiz.de/10012985264
We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 … strongly an expert believes that higher capital requirements would increase the cost of bank lending …
Persistent link: https://www.econbiz.de/10012831717
We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 … strongly an expert believes that higher capital requirements would increase the cost of bank lending …
Persistent link: https://www.econbiz.de/10013324227