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The impact of public guarantees on bank risk taking: evidence from a natural experiment

Gropp, Reint E.; Gruendl, Christian; Guettler, Andre - 2010

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank/borrower information. The results suggest that banks whose...

Persistent link: https://www.econbiz.de/10011605318

The Role of Counterparty Risk and Asymmetric Information in the Interbank Market

Cappelletti, Giuseppe - 2017

We study the effect of counterparty risk on the ability of Italian banks to access the foreign unsecured interbank market during the sovereign debt crisis in the second half of 2011. With the onset of the crisis, interest rates in the Italian interbank market soared and foreign lending decreased...

Persistent link: https://www.econbiz.de/10012962465

The Leverage Ratio, Risk-Taking and Bank Stability

Smith, Jonathan Acosta - 2017

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk-taking associated with the introduction of the Basel III Leverage Ratio. This is addressed in both a theoretical and empirical setting. Using a theoretical micro model, we show that a...

Persistent link: https://www.econbiz.de/10012953806

Risk, Capital Buffer and Bank Lending : A Granular Approach to the Adjustment of Euro Area Banks

Maurin, Laurent - 2012

We develop a partial adjustment model in order to estimate the factors contributing to banks' internal target capital ratio, lending policy and holding of securities. The model is estimated on a panel of listed euro area banks and country specific macrovariables. Firstly, banks' internal target...

Persistent link: https://www.econbiz.de/10013097610

Predicting Distress in European Banks

Betz, Frank - 2013

are that complementing bank specific vulnerabilities with indicators for macro-financial imbalances and banking sector …

Persistent link: https://www.econbiz.de/10013074637

Competition and Bank Risk : The Effect of Securitization and Bank Capital

Marqués Ibáñez, David - 2014

We find that the increased use of securitisation activity in the banking sector prior to the 2007-2009 crisis augmented …

Persistent link: https://www.econbiz.de/10013054085

Bank Private Information in CDS Markets

Bilan, Andrada; Ongena, Steven; Pancaro, Cosimo - 2023

Can banks trade credit default swaps (CDSs) referenced on their current corporate clients at competitive prices, or are …

Persistent link: https://www.econbiz.de/10014354665

Lifting the Banking Veil : Credit Standards’ Harmonization Through Lending Transparency

Kang, Jung Koo - 2020

We explore whether the transparency in banks' lending activities enhances the harmonization of credit terms that a bank offers across its different geographic regions. We take advantage of a novel loan-level reporting initiative by the European Central Bank, which requires repo borrowing banks...

Persistent link: https://www.econbiz.de/10012843214

Credit Supply and Human Capital : Evidence from Bank Pension Liabilities

Barbosa, Luciana - 2019

We identify the effects of exogenous credit constraints on firm ability to attract and retain skilled workers. To do so, we exploit a shock to the value of the pension obligations of Portuguese banks resulting from a change in accounting norms. Using bank-firm credit exposures that we match with...

Persistent link: https://www.econbiz.de/10012871798

Sovereign Risk and Bank Risk-Taking

Ari, Anil - 2016

national banking system has sharply increased, raising issues in their economic and financial resilience, as well as in policy … design. This paper examines these issues by analyzing the banking equilibrium in a model with optimizing banks and depositors …. To the extent that sovereign default causes bank losses also independently of their holding of domestic government bonds …

Persistent link: https://www.econbiz.de/10012993780