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discipline bank behavior. By controlling for a more comprehensive set of risk/return factors, the study improves upon …
Persistent link: https://www.econbiz.de/10014401447
discipline: a weak bank may not necessarily be able to stop a deposit drain by raising its uninsured deposit interest rates …
Persistent link: https://www.econbiz.de/10014403981
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
efficiency concerns implied by Shari’ah constraints. Greater risk sharing among cooperative bank stakeholders, using mechanisms …
Persistent link: https://www.econbiz.de/10012667506
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
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
banks’ nonperforming assets. This increase causes genuine solvency problems and accelerates the bank run. Policy simulations … show that compensatory monetary policy (increasing currency supply when deposits fall) mitigates the bank run but causes … inflation and external imbalances. Combining compensatory monetary policy with tight fiscal policies also slows the bank run and …
Persistent link: https://www.econbiz.de/10014401216
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 …
Persistent link: https://www.econbiz.de/10014403498
signal on bank project quality, short-term wholesale financiers have lower incentives to conduct costly monitoring, and …
Persistent link: https://www.econbiz.de/10014399233