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Government Guarantees and Bank Risk Taking Incentives
Fischer, Markus - 2014
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/10013055384
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A Continuous Theory of Income Insurance
Lindbeck, Assar - 2010
In this paper we treat an individual's health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual's health sheds new...
Persistent link: https://www.econbiz.de/10013141884
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Creditor Passivity : The Effects of Bank Competition and Institutions on the Strategic Use of Bankruptcy Filings
Hainz, Christa - 2021
defaulting firms declared bankrupt. First, the bank receives a payoff if a firm is liquidated. Second, it provides information … about a firm's type to its competitors. Thereby, asymmetric information between banks is reduced and bank competition … to bankrupt defaulting firms. This makes information between banks less asymmetric and thus leads to lower interest rates …
Persistent link: https://www.econbiz.de/10013316824