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Silvo, Aino; Verona, Fabio - 2021

macroeconomic and macroprudential policies. We show how the availability of a durable consumption good (housing), on the one hand …

Persistent link: https://www.econbiz.de/10013315311

House Prices, Lending Standards, and the Macroeconomy

Silvo, Aino - 2018

I study the link between house prices, lending standards, and aggregate over-investment in housing. I develop a model of the housing market where the credit market is affected by asymmetric information. Selection is towards less creditworthy borrowers. Asymmetric information coupled with...

Persistent link: https://www.econbiz.de/10012934706

Lone (Loan) Wolf Pack Risk

Gao, Mingze; Hasan, Iftekhar; Qiu, Buhui; Wu, Eliza - 2023

This paper proposes an early-warning bank risk measure based on the syndicate concentration of recent syndicated loans that a bank participates in. At the bank level, higher values of the measure predict greater risks (i.e., loan loss provisions, idiosyncratic return volatility, default...

Persistent link: https://www.econbiz.de/10014259305

Euler Consumption Equation with Non-Separable Preferences over Consumption and Leisure and Collateral Constraints

Kilponen, Juha - 2009

This paper derives and estimates an aggregate Euler consumption equation which allows one to compare the importance of … collateral constraints and non-separability of consumption and leisure as alternative sources of excess sensitivity of … consumption to current income. Estimation results suggest that during a severe financial distress both non-separability and …

Persistent link: https://www.econbiz.de/10013158381

The Net Worth Trap : Investment and Output Dynamics in the Presence of Financing Constraints

Isohätälä, Jukka - 2014

We study the impact of financing constraints on investment and output dynamics, in a continuous time setting with output a linear function of capital. Decline of net worth reduces investment and, if firms can rent capital to unconstrained outside investors, can create a 'net worth trap' with...

Persistent link: https://www.econbiz.de/10013043934

Central Bank Liquidity Auction Mechanism Design and the Interbank Market

Ollikka, Kimmo - 2013

We study whether the mechanism design in the central bank liquidity auctions matters for the interbank money market interest rate levels and volatility. Furthermore, we compare different mechanisms to sell liquidity in terms of revenue, efficiency and auction stage interest rate levels and...

Persistent link: https://www.econbiz.de/10013075449

The 1990's Financial Crises in Nordic Countries

Honkapohja, Seppo - 2009

The current financial crisis, which has lasted almost one and a half years, is the 19th such crisis in the post-war period in advanced economies. Recent literature classifies the Nordic crises in Norway, Sweden and Finland in late 1980's and early 1990's among the Big Five crises that have...

Persistent link: https://www.econbiz.de/10013158447

Enforcement of Banking Regulation and the Cost of Borrowing

Deli, Yota - 2018

We show that borrowing firms benefit substantially from important enforcement actions issued on U.S. banks for safety and soundness reasons. Using hand-collected data on such actions from the main three U.S. regulators and syndicated loan deals over the years 1997-2014, we find that enforcement...

Persistent link: https://www.econbiz.de/10012909236

The Effect of TLTRO-II on Bank Lending

Laine, Olli-Matti - 2020

on corporate loans and loans for consumption are analysed separately. The cumulative effect of TLTRO-II on participating … banks' stock of corporate loans is estimated to be about 20 per cent. The effect on lending for consumption is found close …

Persistent link: https://www.econbiz.de/10012849601

Financial Fragility, Macroeconomic Shocks and Banks' Loan Losses : Evidence from Europe

Pesola, Jarmo - 2009

This paper tests the hypothesis that the more fragile a banking system is, the more likely it is to experience problems when an unexpected shock hits. The empirical framework where this test is conducted is a reduced form model, where macroeconomic factors explain banks' loan losses. The...

Persistent link: https://www.econbiz.de/10012721158