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This paper links the current sub-prime mortgage crisis to a decline in lending standards associated with the rapid expansion of this market. We show that lending standards declined more in areas that experienced larger credit booms and house price increases. We also find that the underlying...
Persistent link: https://www.econbiz.de/10012677586
This paper examines whether financial development boosts the growth of small firms more than large firms and hence provides information on the mechanisms through which financial development fosters aggregate economic growth. We define an industry's technological firm size as the firm size...
Persistent link: https://www.econbiz.de/10012467705
actions by bank owners to change management, contract with depositors to extend liability maturity structure, write off bad … assets, and/or inject capital affected bank survival and deposit retention. This historical episode is particularly …
Persistent link: https://www.econbiz.de/10013334444
opted for issuing blanket guarantees on bank liabilities to stop or avoid widespread bank runs. In theory, blanket … guarantees can prevent bank runs if they are credible. However, guarantee could add substantial fiscal costs to bank …
Persistent link: https://www.econbiz.de/10005826542
The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has brought to light a number of deficiencies in financial regulation and architecture, particularly in the treatment of systemically important financial...
Persistent link: https://www.econbiz.de/10008519478
This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for...
Persistent link: https://www.econbiz.de/10008777010
interventions aimed at alleviating the bank capital crunch. We find that the growth of firms dependent on external financing is … disproportionately positively affected by bank recapitalization policies, and that this effect is quantitatively important and robust to …
Persistent link: https://www.econbiz.de/10008876580
macroeconomic and bank regulatory reform. Bank regulatory policy promoted privatization, financial liberalization, and free entry …. Argentina's bank regulatory system now is widely regarded as one of the two or three most successful among emerging market …
Persistent link: https://www.econbiz.de/10012471046
greater insider ownership leads to less equity issuances. Several tests are consistent with the view that bank insiders are … between bank equity and lending, the results stress that ownership structure can shape the resilience of banks--and hence the …
Persistent link: https://www.econbiz.de/10012481637
, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk …, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate … governance structure of each bank. Moreover, we show that the relation between bank risk and capital regulations, deposit …
Persistent link: https://www.econbiz.de/10012464532