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Testing Macroprudential Stress Tests : The Risk of Regulatory Risk Weights
Acharya, Viral V. - 2013
Macroprudential stress tests have been employed by regulators in the United States and Europe to assess and address the solvency condition of financial firms in adverse macroeconomic scenarios. We provide a test of these stress tests by comparing their risk assessments and outcomes to those from...
Persistent link: https://www.econbiz.de/10012459694
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Testing Macroprudential Stress Tests : The Risk of Regulatory Risk Weights
Acharya, Viral V. - 2013
Macroprudential stress tests have been employed by regulators in the United States and Europe to assess and address the solvency condition of financial firms in adverse macroeconomic scenarios. We provide a test of these stress tests by comparing their risk assessments and outcomes to those from...
Persistent link: https://www.econbiz.de/10013083085
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Kicking the Can Down the Road : Government Interventions in the European Banking Sector
Acharya, Viral V. - 2020
We analyze the determinants and the long-run consequences of government interventions in the eurozone banking sector …, eventually, greater reliance on liquidity support from the European Central Bank …
Persistent link: https://www.econbiz.de/10012481392
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Kicking the Can Down the Road : Government Interventions in the European Banking Sector
Acharya, Viral V.; Borchert, Lea; Jager, Maximilian; … - 2022
We analyze the determinants and the long-run consequences of government interventions in the eurozone banking sector …, eventually, greater reliance on liquidity support from the European Central Bank …
Persistent link: https://www.econbiz.de/10013295279
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Monetary Easing, Leveraged Payouts and Lack of Investment
Acharya, Viral V. - 2019
This paper studies a model in which a low monetary policy rate lowers the cost of capital for entrepreneurs, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase payouts to equity. Whereas such leveraged payouts...
Persistent link: https://www.econbiz.de/10012480414
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The Sensitivity of Cash Savings to the Cost of Capital
Acharya, Viral V. - 2020
We show theoretically and empirically that in the presence of a time-varying cost of capital (COC), firms have a hedging motive to reduce the overall COC over time by saving cash when COC is relatively low. The sensitivity of cash savings to COC is especially pronounced with respect to the cost...
Persistent link: https://www.econbiz.de/10012481372
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Monetary Easing, Leveraged Payouts and Lack of Investment
Acharya, Viral V.; Plantin, Guillaume - 2022
This paper studies a model in which a low monetary policy rate lowers the cost of capital for entrepreneurs, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase payouts to equity. Whereas such leveraged payouts...
Persistent link: https://www.econbiz.de/10013322932
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Does the Lack of Financial Stability Impair the Transmission of Monetary Policy?
Acharya, Viral V. - 2019
We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the period … from January 2006 to June 2010. We find evidence consistent with an impaired transmission channel due to bank risk. Central … bank liquidity does not translate into lower loan spreads for high-risk banks for maturities beyond one year, even as it …
Persistent link: https://www.econbiz.de/10012480422
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Does the Lack of Financial Stability Impair the Transmission of Monetary Policy?
Acharya, Viral V. - 2019
We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the period … from January 2006 to June 2010. We find evidence consistent with an impaired transmission channel due to bank risk. Central … bank liquidity does not translate into lower loan spreads for high-risk banks for maturities beyond one year, even as it …
Persistent link: https://www.econbiz.de/10012858814
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A Pyrrhic Victory? - Bank Bailouts and Sovereign Credit Risk
Acharya, Viral V. - 2011
-way feedback between financial and sovereign credit risk using data on the credit default swaps (CDS) of the Eurozone countries for … widening of sovereign CDS spreads and narrowing of bank CDS spreads; however, post-bailouts there emerged a significant co …-movement between bank CDS and sovereign CDS, even after controlling for banks' equity performance, the latter being consistent with an …
Persistent link: https://www.econbiz.de/10012461522