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Discussions of financial risk often fail to distinguish between risks that are consciously borne and those that are not. To understand the breeding conditions for financial crises the prime focus of concern should not be simply on large risk-taking per se, but on the unintended, or unanticipated...
Persistent link: https://www.econbiz.de/10012786498
-funded capital injections. However, on closer inspection the composition of bank capital shifted radically from one based on common …
Persistent link: https://www.econbiz.de/10013128263
-rated tranches were economically trivial for the typical bank, but banks with greater holdings performed more poorly during the …-rated tranches are not higher for banks with large trading books in regressions that control for bank size. The ratio of highly …-rated tranches holdings to assets increases with bank assets, but not for banks with more than $50 billion of assets. This evidence …
Persistent link: https://www.econbiz.de/10013121733
We investigate whether a bank's performance during the 1998 crisis, which was viewed at the time as the most dramatic … crisis since the Great Depression, predicts its performance during the recent financial crisis. One hypothesis is that a bank …. Another hypothesis is that a bank's poor experience in a crisis is tied to aspects of its business model that are persistent …
Persistent link: https://www.econbiz.de/10013125176
the effect of a state's interstate banking regulation on the level and structure of bank CEO compensation. Using panel …
Persistent link: https://www.econbiz.de/10013125319
Yes, it did. We use exogenous variation in banks' incentives to conform to the standards of the Community Reinvestment Act (CRA) around regulatory exam dates to trace out the effect of the CRA on lending activity. Our empirical strategy compares lending behavior of banks undergoing CRA exams...
Persistent link: https://www.econbiz.de/10013096848
We develop a quantitative equilibrium model of financial crises to assess the interaction between ex-post interventions in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and mitigate the severity of the recession. Ex ante, the...
Persistent link: https://www.econbiz.de/10013096860
bank failure rates in Michigan during the period 1932-1934, which includes the important Michigan banking crisis of early … purchases (the policy tool employed after March 1933) on bank failure rates. Our estimates treat the receipt of RFC assistance … assistance that are not directly related to failure risk) for analyzing the effects of RFC assistance on bank survival. We find …
Persistent link: https://www.econbiz.de/10013100128
separate firm-borrowing shocks from bank-supply shocks using a vast sample of matched bank-firm lending data. We decompose … aggregate loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks. The high degree of … role for granular shocks as in Gabaix (2011). We show that idiosyncratic granular bank-supply shocks explain 30-40 percent …
Persistent link: https://www.econbiz.de/10013085124
the area that would eventually become the Manufacturing Belt. Using a new bank census, the paper shows that these changes …
Persistent link: https://www.econbiz.de/10013087050