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Loan Sales and Screening Incentives
Bester, Helmut; Gehrig, Thomas; Stenbacka, Rune - C.E.P.R. Discussion Papers - 2012
We analyze the effect of loan sales on the intensity of costly screening. Loan sales strengthen screening incentives when screening primarily improves the bank’s ability to identify profitable loans and when banks retain most of those profitable loans. However, loan sales dampen screening...
Persistent link: https://www.econbiz.de/10011083726
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Acquisitions, Entry, and Innovation in Network Industries
Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim Ingemar - C.E.P.R. Discussion Papers - 2013
In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the option of selling to an incumbent increases innovation...
Persistent link: https://www.econbiz.de/10011083667
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Competition and Entry in Banking: Implications for Stability and Capital Regulation
Boot, Arnoud W A; Marinc, Matej - C.E.P.R. Discussion Papers - 2006
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the competitive environment affect bank monitoring choices and...
Persistent link: https://www.econbiz.de/10005666421
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Deregulation of the European Banking Industry (1980-1991)
Gual, Jordi; Neven, Damien J - C.E.P.R. Discussion Papers - 1992
In this paper the experience of deregulation in the banking sector of seven EC countries (Belgium, France, Germany, Italy, the Netherlands, Spain and the UK) is analysed. Lessons are drawn for assessment of how the EC directives affecting this sector could further affect the industry. Our...
Persistent link: https://www.econbiz.de/10005791625
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Securitization and Compensation in Financial Institutions
Inderst, Roman; Pfeil, Sebastian - C.E.P.R. Discussion Papers - 2010
their securitization decision. We also assess the case for requiring financial institutions to defer bonus pay so as to make … interaction of financial institutions' internal agency problems with the external agency problem that arises from securitization. …
Persistent link: https://www.econbiz.de/10008692310
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Securitization, Transparency and Liquidity
Pagano, Marco; Volpin, Paolo - C.E.P.R. Discussion Papers - 2008
We present a model in which issuers of asset backed securities choose to release coarse information to enhance the liquidity of their primary market, at the cost of reducing secondary market liquidity or even causing it to freeze. The degree of transparency is inefficiently low if the social...
Persistent link: https://www.econbiz.de/10005504512
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Privately versus Publicly Optimal Skin in the Game: Optimal Mechanism and Security Design
Chemla, Gilles; Hennessy, Christopher - C.E.P.R. Discussion Papers - 2011
We examine screening incentives, welfare and the case for mandatory skin-in-the-game. Ex ante banks can screen, using interim private information to choose retentions and structuring. Ex post speculators trade with rational hedging investors. Absent regulation, there is a separating equilibrium...
Persistent link: https://www.econbiz.de/10009024483
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Lending relationships and credit rationing: the impact of securitization
Carbó Valverde, Santiago; Degryse, Hans; … - C.E.P.R. Discussion Papers - 2012
Banks have been heavily involved in securitization. We study whether the involvedness of a firm’s main bank into … different types of securitization activity -- asset backed securities (ABS) and covered bonds -- influences credit supply before … and during the 2007-8 financial crisis. Both types of securitization allow the bank to generate liquidity. To the extent …
Persistent link: https://www.econbiz.de/10011084511
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Credit Ratings Failures and Policy Options
Pagano, Marco; Volpin, Paolo - C.E.P.R. Discussion Papers - 2009
This paper examines the role of credit rating agencies in the subprime crisis that triggered the 2007-08 financial turmoil. The focus of the paper is on two aspects of ratings that contributed to the boom and bust of the market for asset-backed securities: rating inflation and coarse information...
Persistent link: https://www.econbiz.de/10008558591
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Lessons from the 2007 Financial Crisis
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007
The paper studies the causes of the current financial crisis and considers proposals for mitigation and prevention of future crises. The crisis is was the product of a ‘perfect storm’ bringing together a number of microeconomic and macroeconomic pathologies. Among the microeconomic systemic...
Persistent link: https://www.econbiz.de/10005791213