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Social Capital and the Cost of Credit : Evidence from a Crisis

Mistrulli, Paolo Emilio - 2015

Social capital is a key factor affecting the functioning of financial markets (Guiso, Sapienza and Zingales, 2004). However, the estimation of the effect of social capital on credit markets is notoriously difficult. In this paper we exploit the recent Lehman Brothers crisis and a rich dataset to...

Persistent link: https://www.econbiz.de/10013023488

Inequality and Trust : New Evidence from Panel Data

Barone, Guglielmo - 2015

The relationship between inequality and trust has attracted the interest of many scholars who have found a negative … relationship between the two variables. However, the causal link from inequality to trust is far from being identified and the … findings, income inequality significantly and negatively affects generalised trust. However, this result only holds for …

Persistent link: https://www.econbiz.de/10013030211

How Does Bank Capital Affect the Supply of Mortgages? Evidence from a Randomized Experiment

Michelangeli, Valentina - 2016

We study the effect of bank capital on the supply of mortgages. We fully control for endogenous matching between borrowers, loan contracts, and banks by submitting randomized mortgage applications to the major online mortgage broker in Italy. We find that: higher bank capital is associated with...

Persistent link: https://www.econbiz.de/10012992538

Higher Capital Requirements and Credit Supply : Evidence from Italy

Galardo, Maddalena; Vacca, Valerio Paolo - 2022

We use a rich dataset on bank loans to Italian firms matched to information on firms’ and banks’ characteristics, and exploit the implementation of Basel III reforms in Italy to investigate the impact of higher risk-based capital requirements on credit supply. While we do not address the...

Persistent link: https://www.econbiz.de/10013404915

EU Banks' Dividend Policies : Main Determinants and the Role of Capital Ratios

Cardillo, Salvatore; Raponi, Jacopo - 2023

The aim of this work is to gauge the main determinants of EU banks’ dividend policies, by testing four theoretical assumptions, i.e. signaling, agency conflict (between shareholders and managers and between shareholders and creditors), life-cycle and regulatory pressure, on a sample of 79...

Persistent link: https://www.econbiz.de/10014350313

How Excessive Is Banks’ Maturity Transformation?

Segura, Anatoli - 2016

We quantify the gains from regulating banks' maturity transformation in an infinite horizon model of banks which finance long-term assets with non-tradable debt. Banks choose the amount and maturity of their debt trading off investors' preference for short maturities with the risk of systemic...

Persistent link: https://www.econbiz.de/10012980515

Simple Banking : Profitability and the Yield Curve

Alessandri, Piergiorgio - 2014

How does bank profitability vary with interest rates? We present a model of a monopolistically competitive bank subject to repricing frictions, and test the model's predictions using a unique panel data set on UK banks. We find evidence that large banks retain a residual exposure to interest...

Persistent link: https://www.econbiz.de/10013056569

Always Look on the Bright Side? Central Counterparties and Interbank Markets during the Financial Crisis

Affinito, Massimiliano - 2019

This paper joins the debate on the growing use of CCPs in interbank markets by analysing a scarcely explored source of risk. Namely, that central clearing may provide riskier banks that are cut off from the bilateral segment with another means of accessing the interbank market, thereby eluding...

Persistent link: https://www.econbiz.de/10012898844

Contagion in the CoCos Market? A Case Study of Two Stress Events

Bologna, Pierluigi - 2019

The post-crisis regulatory framework has fostered the development of the contingent convertible bonds (CoCos) market. These instruments permit banks to absorb losses as a going concern but their critics warn that they could have potentially destabilizing effects in stress situations. We analyse...

Persistent link: https://www.econbiz.de/10012865664

Banks’ Maturity Transformation : Risk, Reward, and Policy

Bologna, Pierluigi - 2017

The aim of this paper is twofold: first, to study the determinants of banks' net interest margin with a particular focus on the role of maturity transformation, using a new measure of maturity mismatch; second, to analyse the implications for banks of the relaxation of a binding prudential limit...

Persistent link: https://www.econbiz.de/10012941761