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We examine the impact of various dimensions of financial reform on the likelihood of systemic and non-systemic banking crises. Using new financial reform measures for a large sample of developing and developed countries for the period 1973 to 2002, our multivariate probit modeling results...
Persistent link: https://www.econbiz.de/10003922715
and firms use non-bank finance, including trade credits and barter trade, to finance production. The banking failure …
Persistent link: https://www.econbiz.de/10011514178
This paper attempts to reconcile the apparent contradiction between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private...
Persistent link: https://www.econbiz.de/10011409380
Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the …
Persistent link: https://www.econbiz.de/10014334373
-based measures of systemic bank shocks (SBS). These measures differ from "banking crisis" (BC) indicators employed in many empirical … studies, which are constructed using primarily information on government actions undertaken in response to bank distress … that BC indicators actually measure lagged policy responses to systemic bank shocks. We then re-examine the impact of …
Persistent link: https://www.econbiz.de/10003994497
Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …
Persistent link: https://www.econbiz.de/10011400902
incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a … bank manager monitoring the bank’s loan portfolio. The manager must be incentivized to warn the board before a crisis …
Persistent link: https://www.econbiz.de/10010467356
I review the state of the art of the academic theoretical and empirical literature on the potential trade-off between competition and stability in banking. There are two basic channels through which competition may increase instability: by exacerbating the coordination problem of...
Persistent link: https://www.econbiz.de/10003967776
growing gap between deposits above lending and has compressed interest margins as the traditional source of bank's income …
Persistent link: https://www.econbiz.de/10011646717
Switzerland in 2012. We find that the CCyB's introduction led to higher growth in commercial lending although this was unrelated …
Persistent link: https://www.econbiz.de/10012064522