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We modify the Diamond and Dybvig (1983) model of banking to jointly study various regulations in the presence of credit and run risk. Banks choose between liquid and illiquid assets on the asset side, and between deposits and equity on the liability side. The endogenously determined asset...
Persistent link: https://www.econbiz.de/10011803125
, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …
Persistent link: https://www.econbiz.de/10011710170
We find that that the Current Expected Credit Loss (CECL) standard would slightly dampen fluctuations in bank lending … capital distributions. We consider a variety of approaches to address uncertainty regarding the management of bank capital and …
Persistent link: https://www.econbiz.de/10012182062
We investigate the connections between bank capital regulation and the prevalence of lightly regulated nonbanks (shadow …
Persistent link: https://www.econbiz.de/10011932226
In this paper, we exploit a natural experiment in which thrifts in several states witnessed an exogenous reduction in supervisory attention to assess the effect of supervision on financial institutions' willingness to take risk. We show that the affected institutions took on much more risk than...
Persistent link: https://www.econbiz.de/10011710132
financial crisis even after controlling for capital, liquidity, and other standard bank performance measures. While high price …
Persistent link: https://www.econbiz.de/10011803674
We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … allows for bank and nonbank financial intermediation. We posit economy-wide aggregate and sectoral disturbances to … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who …
Persistent link: https://www.econbiz.de/10012181042
banks submit in Term Deposit Facility operations, a Federal Reserve tool created to manage the quantity of bank reserves. We … term deposits qualify for the LCR. These results suggest that liquidity regulation affects bank demand in monetary policy …
Persistent link: https://www.econbiz.de/10011578907
The Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) requires large bank holding companies (BHCs) to … median bank range from the 90th percentile to above the 99th percentile of the operational loss distribution …
Persistent link: https://www.econbiz.de/10012181176
variation in the data based on the theories of bank capital regulation. The results show that countries with high average …
Persistent link: https://www.econbiz.de/10011578143