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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 … credit markets, aspects of the global securitization market are now struggling to revive. In this paper I discuss the role … that ethics played in securitization prior to the 2008 financial crisis and find that it is not an obvious story of moral …
Persistent link: https://www.econbiz.de/10012963439
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Securitization and Crash Risk : Evidence from Large European Banks
Battaglia, Francesca - 2018
The 2008 global financial crisis highlights the importance of securitization and crash risk. Yet there is a dearth of … papers exploring the link between securitization and crash risk. We analyze 7,096 securitization deals made by large European … listed banks between 2000 and 2017. Our paper provides evidence that bank risk declines in the year of the securitization and …
Persistent link: https://www.econbiz.de/10012906555
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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...
Persistent link: https://www.econbiz.de/10013130404
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Credit Allocation, Capital Requirements and Output
Jokivuolle, Esa - 2011
We show how banks' excessive risk-taking, stemming from informational asymmetries in loan markets, can lead to an excessive output loss when a recession starts. Risk-based capital requirements can alleviate the output loss by reducing excessive risk-taking in ‘normal' times. Model simulations...
Persistent link: https://www.econbiz.de/10013130532
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The Feasibility of Through-the-Cycle Ratings
Kauko, Karlo - 2010
It has been proposed that the potential procyclicality of Basel II could be alleviated by using through-the-cycle (TTC) ratings in IRBA models. A TTC rating would be based on the structural component of the debtor's credit risk ignoring cyclical fluctuations. This paper tests for the existence...
Persistent link: https://www.econbiz.de/10013138841
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Subordinated Debt, Market Discipline, and Bank Risk
Chen, Yehning - 2011
This paper demonstrates that subordinated debt (‘subdebt' thereafter) regulation can be an effective mechanism for 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...
Persistent link: https://www.econbiz.de/10013118815
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The Impact of CFO Gender on Bank Loan Contracting
Francis, Bill B. - 2011
Motivated by recent studies that show female CFOs are more risk averse than male CFOs when making various corporate decisions, we examine whether banks take into consideration the gender of CFOs when pricing bank loans. We find that in our sample, firms under the control of female CFOs on...
Persistent link: https://www.econbiz.de/10013118825
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Leverage Ratio Requirement, Credit Allocation and Bank Stability
Kiema, Ilkka - 2011
We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top of risk-based capital requirements, as in Basel III. For the current 3% LRR, both low-risk and high-risk loan rates and volumes remain essentially unchanged, because banks...
Persistent link: https://www.econbiz.de/10013124967
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Retail Payments and Economic Growth
Hasan, Iftekhar - 2012
This paper examines the fundamental relationship between retail payments and overall economic growth. Using data from across 27 European markets over the period 1995–2009, the results confirm that migration to efficient electronic retail payments stimulates overall economic growth, consumption...
Persistent link: https://www.econbiz.de/10013104183
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What Determines Bank Stock Price Synchronicity? - Global Evidence
Francis, Bill B. - 2012
This paper examines what institutional and bank-specific factors determine bank stock price synchronicity. Using data on 37 countries from 1996–2007, we find that bank stocks are more aligned with the whole market during the financial crisis; in countries that have more credit provided by...
Persistent link: https://www.econbiz.de/10013104217