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Financial Soundness Indicators and the Characteristics of Financial Cycles

Che, Natasha - 2014

Better “financial soundness” of banks could help mitigate the volatility of financial cycles by reducing banks' risk exposure. But trying to improve financial soundness in the midst of a downturn can do the opposite—further aggravating the contraction of credit. Consistent with this...

Persistent link: https://www.econbiz.de/10013058441

Revisiting the Stabilization Role of Public Banks : Public Debt Matters

Ture, H. Elif - 2021

up the economy. Using cross-country bank-level data for 125 advanced and developing economies for 1999-2018, the paper … finds public bank lending to be less procyclical than private bank lending on average, particularly during busts. A key … result, however, is that in developing economies with high public debt levels, public bank lending has been more procyclical …

Persistent link: https://www.econbiz.de/10013243047

Shadow Banking and Market Discipline on Traditional Banks

Ari, Anil - 2018

a tax onshadow bank profits …

Persistent link: https://www.econbiz.de/10012929925

Exchange Rates and Domestic Credit-Can Macroprudential Policy Reduce the Link?

Nier, Erlend; Thorvardur Tjörvi Ólafsson; Rollinson, … - 2021

This paper examines empirically the role of macroprudential policy in addressing the effects of external shocks on financial stability. In a sample of 62 economies over the period of 2000: Q1-2016: Q4, our dynamic panel regressions show that an appreciation of the local exchange rate is...

Persistent link: https://www.econbiz.de/10013315105

Macroeconomic Effects of Dividend Taxation with Investment Credit Limits

Ghilardi, Matteo; Zilberman, Roy - 2022

We analyze the effects of dividend taxation in a general equilibrium business cycle model with an occasionally-binding investment credit limit. Permanent dividend tax reforms distort capital investment decisions in the binding long-run equilibrium, but are neutral otherwise. Temporary unexpected...

Persistent link: https://www.econbiz.de/10014079906

Emergency Liquidity Support Facilities

He, Dong - 2021

This paper discusses operational aspects of official emergency liquidity support to individual institutions under stress. It argues that properly designed lending procedures, clearly laid-out authority and accountability, as well as disclosures rules, will promote financial stability, reduce...

Persistent link: https://www.econbiz.de/10013212034

India's Banks : Lending to Productive Firms?

George, Siddharth; Kirti, Divya; Martinez Peria, Maria … - 2022

productivity. The analysis reveals that the link between productivity and bank credit growth is weaker for firms with significant …

Persistent link: https://www.econbiz.de/10013289450

What Drives Bank Lending Spreads and Collateral Requirements in the Kyrgyz Republic

Teodoru, Iulia Ruxandra - 2021

Limited access to finance and its high cost have contributed to relatively low levels of private investment and subpar growth in the Kyrgyz Republic. Interest rate spreads have moderated in recent years, but remain high from both a regional and global perspective. At the same time, collateral...

Persistent link: https://www.econbiz.de/10013315106

The Fear Economy : A Theory of Output, Interest, and Safe Assets

Agarwal, Ruchir - 2022

This paper presents a fear theory of the economy, based on the interplay between fear of rare disasters and the … exogenously rises, the demand for safe assets rise and the neutral rate falls. If the central bank does not lower the safe rate by …

Persistent link: https://www.econbiz.de/10014239723

Private Sector Deleveraging and Growth Following Busts

Chen, Sally - 2015

Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries...

Persistent link: https://www.econbiz.de/10013025503