Showing 1 - 10 of 248
Widespread implicit guarantees and interest ceilings were major distortions in China's financial system, contributing to a misallocation of resources. We analyze the impact of removing such frictions in a general equilibrium setting. The results show that comprehensive reforms generate better...
Persistent link: https://www.econbiz.de/10011445597
This paper reviews the impact of interest rate controls in Kenya, introduced in September 2016. The intent of the controls was to reduce the cost of borrowing, expand access to credit, and increase the return on savings. However, we find that the law on interest rate controls has had the...
Persistent link: https://www.econbiz.de/10012022041
discusses the trends in emerging market corporate debt and leverage, and illustrates how those firms are vulnerable to interest …’ ability to service debt and lead to higher debt at risk, especially in countries with high shares of foreign currency debt and …
Persistent link: https://www.econbiz.de/10011408290
, Poland, Russia, Slovakia, and Slovenia for the period 1994-1999 it is shown that historical values for interest rates …
Persistent link: https://www.econbiz.de/10014399894
Islamic and cooperative banks such as credit unions are broadly similar in that they both share some risk with savers. However, risk sharing goes along with ownership control in cooperatives, whilst Islamic banks share risk with borrowers and downside risk with depositors. Islamic banking is...
Persistent link: https://www.econbiz.de/10012667506
In the last decade Cape Verde has experienced a strong accumulation of emigrant deposits. These deposits have provided much needed foreign exchange to the country, adding support to the exchange rate peg. This paper studies the long-run determinants of emigrant deposits with respect to risk,...
Persistent link: https://www.econbiz.de/10014400380
This paper analyzes behavior of the real deposits in Georgia in1996-2009 by modeling demand for the real broad money balances and the cash-deposit ratio. The results suggest that the main factors that affected deposits over those years were income, development of the financial sector, and...
Persistent link: https://www.econbiz.de/10014400860
Using aggregate and bank level data for several countries, the paper studies what happens to the banking system in the aftermath of a banking crisis. Contemporary crises are not accompanied by declines in aggregate bank deposits, and credit does not fall relative to output, although the growth...
Persistent link: https://www.econbiz.de/10014403498
This paper investigates the presence of depositor discipline in the U.S. banking sector. We test whether depositors penalize (discipline) banks for poor performance by withdrawing their uninsured deposits. While focusing on the movements in uninsured deposits, we also account for the possibility...
Persistent link: https://www.econbiz.de/10014403981
In a model where all banks are initially solvent, an exogenous shock affects confidence, causing a flight from deposits into domestic and foreign currency. Real interest rates increase unexpectedly, affecting firms and raising the share of the banks’ nonperforming assets. This increase causes...
Persistent link: https://www.econbiz.de/10014401216