Showing 1 - 10 of 453
We assess the feasibility, optimality, and policy implications of Environmental, Social, and Corporate Governance (ESG)-linked or “green” lending in a credit market where banks incorporate such non-financial data in credit allocation decisions. We identify an asymmetric information problem:...
Persistent link: https://www.econbiz.de/10015144331
This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …
Persistent link: https://www.econbiz.de/10010257239
typical bank loan maturities; (ii) incorporate bank-lending responses to climate risks; (iii) assess the adequacy of climate …
Persistent link: https://www.econbiz.de/10014249918
the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …
Persistent link: https://www.econbiz.de/10012697108
We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...
Persistent link: https://www.econbiz.de/10010475334
about the pass-through of monetary policy. On the one hand, negative rates could lead to declining bank profitability making … interest rates per se. This paper uses a large micro level data set of the German bank universe to examine how banks behave in … this uncharted territory. The evidence found suggests that bank's business model, i.e. the share of overnight deposits …
Persistent link: https://www.econbiz.de/10011933740
conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …
Persistent link: https://www.econbiz.de/10011557772
We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that …, bonuses respond to performance shocks that are outside the control of employees because they originate in other bank divisions … or even outside the bank. …
Persistent link: https://www.econbiz.de/10011966886
unique dataset providing information about all bank loans to Norwegian firms over several years. Rather than relying on … observed market shares, we use the distance between bank branches and firms to measure the competitiveness of local markets … banks. We find that more competition leads to more risk taking. We also examine the effects of bank competition on the …
Persistent link: https://www.econbiz.de/10014284697
, the equilibrium loan rate spread increases, which raises bank profitability and the market-to-book value of bank capital … model’s dynamic implications in a panel VAR estimation, which suggests that bank lending has even increased in the long …
Persistent link: https://www.econbiz.de/10012534512