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letters of credit, which during the capital controls period had to be backed by firms’ own cash collateral rather than the …
Persistent link: https://www.econbiz.de/10014256876
We show that an increase in aggregate uncertainty-measured by stock market volatility-reduces productivity growth more in industries that depend heavily on external finance. This effect is larger during recessions, when financing constraints are more likely to be binding, than during expansions....
Persistent link: https://www.econbiz.de/10012977789
How does access to credit impact consumption volatility? Theory and evidence from advanced economies suggests that greater household access to finance smooths consumption. Evidence from emerging markets, where consumption is usually more volatile than income, indicates that financial reform...
Persistent link: https://www.econbiz.de/10013080461
We investigate the complex interactions between credit constraints, political instability, and capital accumulation using a novel approach based on Kiyotaki and Moore's (1997) theoretical framework. Drawing on a unique firm-level data set from Middle-East and North Africa (MENA), empirical...
Persistent link: https://www.econbiz.de/10013060551
This paper analyzes how different types of bank funding affect the extent to which banks ration credit to borrowers, and the impact that capital requirements have on that rationing. Using an extension of the standard Stiglitz-Weiss model of credit rationing, unsecured wholesale finance is shown...
Persistent link: https://www.econbiz.de/10013086327
This paper highlights the changing collateral landscape and how it may shape the global demand/supply for collateral …. We first identify the key collateral pools (relative to the "old" collateral space) and associated collateral velocities … banks are significantly altering the collateral space. Moreover, regulatory demands stemming from Basel III, Dodd Frank …
Persistent link: https://www.econbiz.de/10013086319
Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of … money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled … spring, the larger the quantitative easing(QE) efforts, the longer the central banks will impact the collateral market and …
Persistent link: https://www.econbiz.de/10013075545
In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where … banks and other financial institutions exchange collateral (such as bonds and equities) for money. Furthermore, the use of … long-dated securities as collateral for short tenors-or example, in securities-lending and repo markets, and prime …
Persistent link: https://www.econbiz.de/10012868472
Little progress has been made so far in addressing - in a comprehensive way - the externalities caused by impact of the interconnectedness within institutions and markets on funding and market liquidity risk within financial systems. The Systemic Risk-adjusted Liquidity (SRL) model combines...
Persistent link: https://www.econbiz.de/10013083627
The recent crisis has spurred the use of stress tests as a (crisis) management and early warning tool. However, a weakness is that they omit potential risks embedded in the banking groups™ geographical structures by assuming that capital and liquidity are available wherever they are needed...
Persistent link: https://www.econbiz.de/10013088407