their creditworthiness and compare different types of subsidies with indirect subsidization through public banks. We find … that, in a large parameter range, the politician prefers public banks to direct subsidies because they avoid windfall gains … subsidies. One important prerequisite for this result is that public banks must not be allowed to fully compete with private …

for banks. To reduce uncertainty, banks acquire additional costly information about borrowers. More information increases …

loss provisions, many banks with high deposit ratios face lower net interest income and lower credit growth rates. If … an expansionary monetary policy contractionary. Also, if interest rates are too low for too long banks could be induced … to take too much risky credit. On the other hand, several economists argue that there is nothing special about negative …

supply of funds and the demand for credit. This study investigates how interest rate spreads affect climate policy in its …

Using data for a large sample of banks from 31 OECD countries over 1995–2018, we analyze the impact of belonging to a … banking group on banks' net interest margins. Our results confirm a positive relationship between interest rates and interest … margins, which is stronger in a low-interest rate environment. For banks belonging to an international banking group, we find …

How much deposits and equity a bank has influences how a banks' lending responds to monetary policy. While the … show in a value-at-risk RTC model that the lending for banks with relatively more equity and non-interest-bearing deposits …". In a panel of US banks, we find strong evidence in support of our model for various risk measures. …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …

banks for each request. We show that households typically are not prudent risk managers but prioritize the minimization of … current mortgage payments over the risk of possible hikes in future mortgage payments. We also provide evidence that banks do … borrowers’ affordability and credit risk. Our results challenge the implicit assumption of the existing mortgage choice …