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Credit Supply : Are there Negative Spillovers from Banks’ Proprietary Trading?

Kurz, Michael - 2019

Following the 2008 financial crisis, policy makers considered regulations that restrict banks' activities which were motivated by concerns that banks use central bank borrowing, government guarantees, or subsidies to fund securities trading instead of lending to the real economy. Using a global...

Persistent link: https://www.econbiz.de/10012860138

Effect of Bank Capital Requirements on Economic Growth : A Survey

Martynova, Natalya - 2015

evidence of a direct effect; research focuses on the indirect effects of capital requirements on credit supply, bank asset risk … credit supply as well as decrease credit demand by raising lending rates which may slow down economic growth. However, having …

Persistent link: https://www.econbiz.de/10013026489

Contingent Convertible Bonds with Floating Coupon Payments : Fixing the Equilibrium Problem

Vullings, Daniël - 2016

Contingent convertible bonds (CoCos) are increasingly popular financial instruments used by banks to satisfy capital requirements. CoCos with market-based conversion triggers in particular receive much attention in the literature. The pricing of CoCos with such a market trigger is problematic as...

Persistent link: https://www.econbiz.de/10012985558

Basel Methodological Heterogeneity and Banking System Stability : The Case of the Netherlands

Sanches, Laurence Deborgies - 2018

The paper investigates how the mix of credit risk measurement methodologies under Basel capital adequacy rules …

Persistent link: https://www.econbiz.de/10012917972

Capital Regulation and Tail Risk

Perotti, Enrico - 2011

The paper studies risk mitigation associated with capital regulation, in a context where banks may choose tail risk assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited liability. Moreover, higher capital may have an...

Persistent link: https://www.econbiz.de/10013118958

Strategic Loan Defaults and Coordination : An Experimental Analysis

Trautmann, Stefan T. - 2011

This paper experimentally studies the impact of uncertainty about bank and borrower fundamentals on loan repayment. We find that solvent borrowers are more likely to default strategically when stricter disclosure creates common knowledge about bank weakness. Borrowers are also less likely to...

Persistent link: https://www.econbiz.de/10013118964

The Economic Perspective of Bank Bankruptcy Law

Marinc, Matej - 2011

This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific characteristics that distinguish banks from other...

Persistent link: https://www.econbiz.de/10013118965

A Pigovian Approach to Liquidity Regulation

Perotti, Enrico - 2011

This paper discusses liquidity regulation when short-term funding enables credit growth but generates negative systemic … incentives for risk creation. When banks differ in credit opportunities, a Pigovian tax on short-term funding is efficient in … containing risk and preserving credit quality, while quantity-based funding ratios are distorsionary. Liquidity buffers are …

Persistent link: https://www.econbiz.de/10013118982

Monetary Policy and Excessive Bank Risk Taking

Agur, Itai - 2011

burden of the banking sector is modest. We model a regulator whose trade-off between bank risk and credit supply is derived …

Persistent link: https://www.econbiz.de/10013119110

Capital Requirements and Credit Rationing

Agur, Itai - 2011

This paper analyzes the trade-off between financial stability and credit rationing that arises when increasing capital … requirements. It extends the Stiglitz-Weiss model of credit rationing to allow for bank default. Bank capital structure then …

Persistent link: https://www.econbiz.de/10013119224