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This paper analyses the impact of loan market competition on the interest rates applied by euro area banks to loans and … pass-through of market rates to bank interest rates, we likewise find that banks tend to price their loans more in … suggest that the competitive pressure is heavier in the loan market than in the deposit markets, so that banks under …
Persistent link: https://www.econbiz.de/10005106652
This paper provides a theory of two-sided market dynamics with arguably better microfoundations. These alternative microfoundations focus on observable heterogeneities of both sides of the market in a competitive framework. The theory is rich in empirical predictions and is less dependent on a...
Persistent link: https://www.econbiz.de/10005021829
Antitrust authorities often argue that merchants cannot reasonably turn down payment cards and therefore are forced to accept unacceptably high merchant discounts. The paper attempts to shed light on this must-take cards view from two angles. First, the paper gives some operational content to...
Persistent link: https://www.econbiz.de/10005021836
Payments systems are typically characterized by some degree of tiering, with upstream firms (clearing agents) providing settlement accounts to downstream institutions that wish to clear and settle payments indirectly in these systems (indirect clearers). Clearing agents provide their indirect...
Persistent link: https://www.econbiz.de/10005021840
banks. However if in extreme scenarios the LCR becomes a binding constraint, the interaction of bank behaviour with the …
Persistent link: https://www.econbiz.de/10010543516
When does the general public lose trust in banks? We provide empirical evidence using responses by Dutch survey …. Negative media reports, falling stock prices, and opaque product information also affect trust in banks. Experiencing a bank …
Persistent link: https://www.econbiz.de/10010726974
We investigate 62 Dutch banks' liquidity behaviour between January 2004 and March 2010, when these banks were subject … to a liquidity regulation that is very similar to Basel III's Liquidity Coverage Ratio (LCR). We find that most banks … the regulation. More solvent banks hold fewer liquid assets against their stock of liquid liabilities, suggesting an …
Persistent link: https://www.econbiz.de/10010757286
Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with …
Persistent link: https://www.econbiz.de/10010798444
The three main measures of competition (HHI, Lerner Index, and H-Statistic) are uncorrelated for U.S. banks. We …
Persistent link: https://www.econbiz.de/10010596088
Banks supply payment services that underpin the smooth operation of the economy. To ensure an efficient payment system …-provided payment services. Billion dollar banks account for around ninety percent of assets in the US and those with around $4 to $7 … billion in assets turn out to be both the most and the least competitive in payment services, not the very largest banks. …
Persistent link: https://www.econbiz.de/10010711999