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We analyze the impact of market liquidity on bank lending in the euro area for different segments over the period 2003 … liquidity has an asymmetric effect on bank lending: The negative impact of a reduction in liquidity is more significant than the … restricted first in times of impaired market liquidity. The bank-level data confirm the strong impact of market liquidity on bank …
Persistent link: https://www.econbiz.de/10011897986
We show that the transmission of the European Central Bank’s (ECB) recent monetary policy tightening differs across … reserve-rich banks’ credit supply is less sensitive to the monetary policy tightening compared to other banks. The effect …
Persistent link: https://www.econbiz.de/10014481115
affects bank lending depends on the whether the banks are drawing on official sector liquidity facilities. Third, liquidity … heterogeneity in the balance sheet characteristics that affect banks’ responses to liquidity risk. Overall, bank balance sheet … financial crisis. Yet, we know little about the actual magnitudes and mechanisms for transmission of liquidity shocks through …
Persistent link: https://www.econbiz.de/10010393856
This paper uses matched bank-firm-level data and the 2014 depreciation of the euro to show that exchange rate … depreciations lead to increased bank loan supply of large banks with significant net foreign asset exposure. This increase in … lending can be explained by a shift in credit towards both export-intensive firms and small banks without foreign asset …
Persistent link: https://www.econbiz.de/10012792736
unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …
Persistent link: https://www.econbiz.de/10011955629
In this paper we relate a bank’s choice between retail and wholesale liabilities to real economic uncertainty and the … resulting volatility of bank loan volumes. We argue that since the volume of retail deposits is slow and costly to adjust to … shocks in the volume of bank assets, banks facing more intense uncertainty and more volatile loan demand tend to employ more …
Persistent link: https://www.econbiz.de/10010192750
Exploiting confidential data on individual German bank balance-sheets, I analyse what characterises a bank that opts to …
Persistent link: https://www.econbiz.de/10013361902
minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. …
Persistent link: https://www.econbiz.de/10011541056
The US credit boom has been identified as one of the causes of the global financial crisis and the resulting debt … overhang is seen as the primary reason for the weak economic recovery. Most of the existing literature links the credit boom to … non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …
Persistent link: https://www.econbiz.de/10011456517
equilibrium elasticity of bank loan supply with respect to bank capital. Although the targeted elasticity is remarkably different …
Persistent link: https://www.econbiz.de/10012214741