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Credit is key to support healthy and sustainable economic growth but excess aggregate credit growth can signal the build-up of imbalances and lead to systemic financial crisis. Hence, monitoring the credit cycle is key to identifying vulnerabilities, particularly in emerging markets, which tend...
Persistent link: https://www.econbiz.de/10012009386
capital and liquidity regulation on bank-lending following the 2008 financial crisis. We find that U.S. banks reinforce their … bank-retail-and-other-lending-growth for large European banks in the context of deleveraging and the 'credit crunch' in … bank-lending-growth, which supports the need to consider heterogeneous banks' characteristics and behaviors when …
Persistent link: https://www.econbiz.de/10011763566
This paper studies the impact of bank regulation and taxation in a dynamic model with banks exposed to credit and … liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare …
Persistent link: https://www.econbiz.de/10014396574
indicate that a 1 percentage point increase in a bank's equity-to-assets ratio lowers its cost of equity by about 18 basis …
Persistent link: https://www.econbiz.de/10012154970
Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the tangible...
Persistent link: https://www.econbiz.de/10014403242
have been reluctant to do so. Provided the market expects a bank to rebuild its buffers, any draw-down will open up a … capital shortfall that will weigh on its share price. Therefore, a bank will only decide to use its buffers if the value …
Persistent link: https://www.econbiz.de/10013170551
This paper assesses the resilience of Panamanian banks to (i) a very severe short-term, and (ii) a significant long-lasting liquidity shock scenario. Short-term liquidity buffers are evaluated by approximating the Liquidity Coverage Ratio (LCR) defined in the Basel III accord. The risk of losing...
Persistent link: https://www.econbiz.de/10011715461
Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre …
Persistent link: https://www.econbiz.de/10012252032