Showing 1 - 10 of 1,067
We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …
Persistent link: https://www.econbiz.de/10012893728
This paper investigates the costs and benefi ts of liquidity regulation. We find that liquidity tools are bene ficial … but cannot completely remove the need for Lender of Last Resort (LOLR) interventions by the central bank. Full compliance …
Persistent link: https://www.econbiz.de/10012914517
We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments …-specific capital buffers in the countries where their parent banks reside and that bank size and liquidity play a role in determining …
Persistent link: https://www.econbiz.de/10012869770
This paper investigates whether European banks have capital targets and how deviations from the target impact their equity composition and activity mix. Using quarterly data for a sample of large European banks between 2004 and 2011, we show that there are notable asymmetries in banks' reactions...
Persistent link: https://www.econbiz.de/10013073081
We study the relationship between banks’ size and risk-taking in the context of supranational banking supervision. Consistently with theoretical work on banking unions and in contrast to analyses emphasising incentives underpinned by the too-big-to-fail effect, we find an inverse relationship...
Persistent link: https://www.econbiz.de/10013210707
natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …
Persistent link: https://www.econbiz.de/10012889191
This paper proposes a new methodology to evaluate the economic effect of state-specific policy changes, using bank … regression discontinuity setup. The study uses a total of 285 pairs of contiguous counties along 38 segments of such regulation …
Persistent link: https://www.econbiz.de/10013316911
We analyze the effect of bank capital requirements on the structure and risk of a financial system where markets …
Persistent link: https://www.econbiz.de/10012893588
Prior to the financial crisis, prudential regulation in the EU was implemented non-uniformly across countries, as … framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …
Persistent link: https://www.econbiz.de/10012869817
This paper studies a banking model of maturity transformation in which regulatory arbitrage induces the coexistence of regulated commercial banks and unregulated shadow banks. We derive three main results: First, the relative size of the shadow banking sector determines the stability of the...
Persistent link: https://www.econbiz.de/10013049188