Showing 1 - 10 of 110
We propose the CoJPoD, a novel framework explicitly linking the cross-sectional and cyclical dimensions of systemic risk. In this framework, banking sector distress in the form of the joint probability of default of financial intermediaries (reflecting contagion from both direct and indirect...
Persistent link: https://www.econbiz.de/10013403523
At the onset of the Covid-19 outbreak, central banks and supervisors introduced dividend restrictions as a new policy … estimate the impact of the ECB’s dividend recommendation on bank lending and risk-taking. To address identification issues, we … fiscal policies that supported credit during the Covid-19 downturn and investigates their interaction with the dividend …
Persistent link: https://www.econbiz.de/10014355951
between the price dividend ratio, expected stock returns and expected dividend growth in the US since 1880. We find a … significant increase in the long-run equilibrium value of the price dividend ratio over time, associated with a fall in the long …
Persistent link: https://www.econbiz.de/10012842441
effects of a novel macroprudential policy rule - that I shall call Dividend Prudential Target (DPT) - aimed at complementing …
Persistent link: https://www.econbiz.de/10012829529
highlights the impor-tance of managing perceptions about dividend uncertainty through credible communication about the expected … duration, frequency and severity of dividend restrictions to limit their unintended side effects …
Persistent link: https://www.econbiz.de/10014254495
Economic literature suggests that banks change their dividend payouts for three main reasons. They may be willing to … to introduction of sector-wide recommendation by regulators to suspend dividend payouts in view of prevailing large …, over a decade and a half preceding the pandemic, bank dividend payouts were adjusted in line with the three motivations …
Persistent link: https://www.econbiz.de/10014258235
insolvency regimes do not unduly inhibit corporate restructuring. Thus, leveraging the important complementarities between bank … strengthening efforts and insolvency regime reform would contribute to breaking the shackles on potential growth in Europe …
Persistent link: https://www.econbiz.de/10012892781
We consider a standard result of customer market theory: if firms have stable customer relations and face financial frictions, they may keep prices relatively high on their locked-in shoppers to maintain short-term profits at the expense of future market shares in times of low demand and vice...
Persistent link: https://www.econbiz.de/10012916150
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home equity. Using US household data from the Survey of Income...
Persistent link: https://www.econbiz.de/10013126001
The paper develops an early-warning model for predicting vulnerabilities leading to distress in European banks using both bank and country-level data. As outright bank failures have been rare in Europe, the paper introduces a novel dataset that complements bankruptcies and defaults with state...
Persistent link: https://www.econbiz.de/10013074637