Showing 1 - 10 of 1,238
Classic models of fire-sales that emphasize liquidity-constrained natural buyers can-notfully account for the asset fire-sales during the Financial Crisis of 2008. I present a modelto demonstrate that fire-sales may happen even when there is a sizable pool of naturalbuyers and in the absence of...
Persistent link: https://www.econbiz.de/10012868464
This paper presents recent trends in bank ownership across countries and summarizes the evidence regarding the … implications of bank ownership structure for bank performance and competition, financial stability, and access to finance. The … the impact of government bank ownership suggests few benefits, especially for developing countries …
Persistent link: https://www.econbiz.de/10012957838
This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United … States on their market valuations. Using two novel identification strategies based on the dynamic process of interstate bank …
Persistent link: https://www.econbiz.de/10013110090
conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank …This paper explores the determinants of profitability across large euro area banks using a novel approach based on … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …
Persistent link: https://www.econbiz.de/10012843521
core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk … with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis …
Persistent link: https://www.econbiz.de/10012999745
The paper investigates EU banks' profitability through the recent financial cycle using banklevelbalance sheet and … deterioration in loan quality and a largerimprovement in cost efficiency. They also downsized their assets more aggressively … stable over the financial cycle, including post-crisis, and there isno clear evidence that aspects of bank business model …
Persistent link: https://www.econbiz.de/10012913876
profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely …This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential … effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible …
Persistent link: https://www.econbiz.de/10012932958
sector size and government effectiveness, credit information infrastructure (e.g., credit registries), the business …
Persistent link: https://www.econbiz.de/10012836535
Investors seek to hedge against interest rate risk by taking long or short positions on bonds ofdifferent maturities. We study changes in risk taking behavior in a low interest rateenvironment by estimating a market stochastic discount factor that is non-linear and thereforeconsistent with the...
Persistent link: https://www.econbiz.de/10012836549
While there is growing evidence of persistent or even permanent output losses from financial crises, the causes remain unclear. One candidate is intangible capital - a rising driver of economic growth that, being non-pledgeable as collateral, is vulnerable to financial frictions. By sheltering...
Persistent link: https://www.econbiz.de/10012840222