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their collateral supply is determined by their ex ante securities holdings and repo rates. Second, it makes use of the …
Persistent link: https://www.econbiz.de/10012651072
A growing literature stresses the importance of the “global financial cycle”, a common global movement in asset prices and credit conditions, for emerging market economies (EMEs). It is argued that one of the key drivers of this global cycle is monetary policy in the U.S., which is...
Persistent link: https://www.econbiz.de/10011405101
In this paper we set up a New-Keynesian model with a heterogenous banking sector to analyze liquidity problems on the interbank market. The presence of an interbank market is essential to consider a situation where an increased liquidity supply by the central bank is only partially passed on to...
Persistent link: https://www.econbiz.de/10010192797
We investigate whether frictions in US financial markets amplify the international propagation of US financial shocks. The dynamics of the US economy is modeled jointly with global macroeconomic and financial variables using a threshold vector autoregression that allows us to capture...
Persistent link: https://www.econbiz.de/10010493885
We utilize the Eurosystem securities lending facilities as a laboratory to investigate the impact of collateral … overall activity in the repo market expands through the collateral multiplier. The improved pricing conditions alleviate … collateral scarcity and enhance market quality in both the repo and cash markets. …
Persistent link: https://www.econbiz.de/10014435510
study the intended and unintended consequences of asset purchases in the repo market with Bund collateral. Bunds that are …
Persistent link: https://www.econbiz.de/10013411244
Have bank regulatory policies and unconventional monetary policies - and any possible interactions - been a factor behind the recent "deglobalisation" in cross-border bank lending? To test this hypothesis, we use bank-level data from the United Kingdom - a country at the heart of the global...
Persistent link: https://www.econbiz.de/10011415783
between borrowers and lenders, we quantify the value of using patents as collateral with regard to capital access. Although … patent collateral and access to capital. We make use of mandatory collateral registry data in Sweden and the Netherlands to …-in-difference regressions on firms' debt allows deducting treatment effects of using patents as collateral. We find that patent pledging enables …
Persistent link: https://www.econbiz.de/10013346735
We analyse the effects of central bank government bond purchases in an estimated DSGE model for the euro area. In the model, central bank asset purchases are relevant in so far as agency costs distort banks' asset allocation between loans and bonds, and households face transaction costs when...
Persistent link: https://www.econbiz.de/10011685100
their demand for collateral assets, and the short-term scarcity of collateral securities leads to higher prices, the Fire … Buy premium. To avoid collateral scarcity, central banks increase the set of eligible collateral assets. However, if the … investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and …
Persistent link: https://www.econbiz.de/10011587096