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To reconcile the mixed empirical results, we develop a theoretical model whose main implication is a concave impact of regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to annual data from 1999 to 2011 drawn from 132...
Persistent link: https://www.econbiz.de/10012052830
The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international …
Persistent link: https://www.econbiz.de/10010266061
a difference-in-difference setting in which private domestic banks serve as the treatment group and state and foreign …-owned banks, whose deposit insurance regime does not change, serve as a control group. …
Persistent link: https://www.econbiz.de/10012493013
This paper analyzes how corporate taxation and regulatory requirements affect the location of financial sector FDI. We use novel information on new financial services entities established by multinational firms in 83 host countries. We find a negative effect of host country taxes on the...
Persistent link: https://www.econbiz.de/10011388172
marginal expected shortfall (MES), the systemic impact index (SII) and the vulnerability index (VI) for 16 listed banks in … that Chinese banks are at greater risk according to the CoVaR, the SII and the VI approaches, but have the lowest MES. …
Persistent link: https://www.econbiz.de/10011388192
public finances. Regimes for restructuring and restoring banks financed by bank levies and fiscal backstops seek to reduce … tax exemptions. Second, the bulk of the payments were contributed by large commercial banks and the head institutes of … savings banks and credit unions. Third, the levy had no effect on the volume of loans or interest rates for the average German …
Persistent link: https://www.econbiz.de/10010352404
This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of guarantees for German Landesbanken which results in lower credit ratings, higher funding costs, and a loss in franchise value. This removal was announced in 2001, but...
Persistent link: https://www.econbiz.de/10010352433
We analyze the link between banking sector quality and sovereign risk in the whole European Union over 1999–2014. We employ four different indicators of sovereign risk (including market- and opinion-based assessments), a rich set of theoretically and empirically motivated banking sector...
Persistent link: https://www.econbiz.de/10011657174
account both bond and issuing bank’s characteristics, and also considers the role of country−specific CoCo bond market …−to−book ratio and total regulatory capital to risk−weighted asset ratio. Further, sizeable responses to CoCo bond and issuing bank’s …
Persistent link: https://www.econbiz.de/10012018242
Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks …
Persistent link: https://www.econbiz.de/10011957214