Similar Search Results

Blanket Guarantee and Restructuring Decisions for Multinational Banks in a Bargaining Model

Niinimäki, Juha-Pekka - 2009

This paper examines blanket guarantee and restructuring decisions in respect of a multinational bank (MNB) using Nash bargaining, when the threat of a panic motivates countries to take decisions quickly. The failure of the bank would cause unevenly distributed externalities between the countries...

Persistent link: https://www.econbiz.de/10013157002

Why are Bank Runs Sometimes Partial?

Kiema, Ilkka - 2015

Concern that government may not guarantee bank deposits in a future crisis can cause a bank run. The government may break its guarantee during a severe crisis because of time-inconsistent preferences regarding the use of public resources. However, as deposits are withdrawn during the bank...

Persistent link: https://www.econbiz.de/10013021043

Moral Hazard in the Credit Market When the Collateral Value is Stochastic

Niinimäki, Juha-Pekka - 2011

This theoretical paper explores the effects of costly and non-costly collateral on moral hazard, when collateral value … may fluctuate. Given that all collateral is costly, stochastic collateral will entail the same positive incentive effects … as nonstochastic collateral, provided the variation in collateral value is modest. If it is large, the incentive effects …

Persistent link: https://www.econbiz.de/10013130404

What's in it for Us? Network Effects and Bank Payment Innovation

Milne, Alistair - 2007

The developed world exhibits substantial but poorly understood differences in the efficiency and quality of low-value payment services. This paper compares payments arrangements in the UK, Norway, Sweden, and Finland, and discusses the impact of network effects on incentives to adopt new...

Persistent link: https://www.econbiz.de/10014223771

Portfolio Effects and Efficiency of Lending under Basel II

Jokivuolle, Esa; Vesala, Timo - 2007

Although beneficial allocational effects have been a central motivation for the Basel II capital adequacy reform, the interaction of these effects with Basel II's procyclical impact has been less discussed. In this paper, we investigate the effect of Basel II on the efficiency of bank lending....

Persistent link: https://www.econbiz.de/10014223914

Integration of Financial Supervision

Holopainen, Helena - 2007

The emergence of financial conglomerates and multinational financial institutions as well as the development of new financial products have raised concerns as to the ability of separate sectoral supervisors and different national authorities to effectively oversee financial markets....

Persistent link: https://www.econbiz.de/10014223946

Pricing Risky Bank Loans in the New Basel II Environment

Zazzara, Cristiano; Hasan, Iftekhar - 2007

Recently, banking literature has had a quest for appropriate pricing of bank loans under the new Basel II rules and has been in pursuit of possible outcomes for undertaking such credit risk. In this paper, we propose a simplified formula to price bank's corporate loans, aiming at making bank...

Persistent link: https://www.econbiz.de/10014224548

Forecasting Expected and Unexpected Losses

Juselius, Mikael; Tarashev, Nikola A. - 2021

Extending a standard credit-risk model illustrates that a single factor can drive both expected losses and the extent to which they may be exceeded in extreme scenarios, ie “unexpected losses.” This leads us to develop a framework for forecasting these losses jointly. In an application to...

Persistent link: https://www.econbiz.de/10013251238

Bank Instability : Interbank Linkages and the Role of Disclosure

König-Kersting, Christian; Trautmann, Stefan T.; … - 2021

We study the impact of disclosure about bank fundamentals on depositors’ behavior in the presence (and absence) of economic linkages between financial institutions. Using a controlled laboratory environment, we identify under which conditions disclosure is conducive to bank stability. We find...

Persistent link: https://www.econbiz.de/10013250485

Securitization : A Financing Vehicle for All Seasons?

Buchanan, Bonnie - 2017

Securitization is considered to be one of the biggest financial innovations of the last century. It is also regarded as both a catalyst and solution to the 2008 financial crisis. Once a popular method of financing the mortgage and consumer credit markets, aspects of the global securitization...

Persistent link: https://www.econbiz.de/10012963439