Narrow search
Showing 1 - 10 of 1,020
Cover Image
Financial Dampening
Wieland, Johannes - 2016
We propose a novel mechanism, “financial dampening,” whereby loan retrenchment by banks attenuates the effectiveness of monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank holding companies (BHCs). We derive an...
Persistent link: https://www.econbiz.de/10012995512
Cover Image
Efficient Bailouts?
Bianchi, Javier - 2012
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
Cover Image
Financing as a Supply Chain : The Capital Structure of Banks and Borrowers
Gornall, Will - 2013
We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset volatility by an order of magnitude relative to that of...
Persistent link: https://www.econbiz.de/10013072879
Cover Image
Bank Health Post-Crisis
Chousakos, Kyriakos - 2017
Economic growth is persistently low following a financial crisis, possibly because of a continuing weal banking system …
Persistent link: https://www.econbiz.de/10012963154
Cover Image
A Model of a Systemic Bank Run
Uhlig, Harald - 2010
The 2008 financial crisis is reminiscent of a bank run, but not quite. In particular, it is financial institutions withdrawing deposits from some core financial institutions, rather than depositors running on their local bank. These core financial institutions have invested the funds in...
Persistent link: https://www.econbiz.de/10013152502
Cover Image
Complexity and Financial Panics
Caballero, Ricardo J. - 2010
During extreme financial crises, all of a sudden, the financial world that was once rife with profit opportunities for financial institutions (banks, for short) becomes exceedingly complex. Confusion and uncertainty follow, ravaging financial markets and triggering massive flight-to-quality...
Persistent link: https://www.econbiz.de/10013152670
Cover Image
Liquidity Risk, Liquidity Creation and Financial Fragility : A Theory of Banking
Diamond, Douglas W. - 2010
such as narrow banking and bank capital requirements …
Persistent link: https://www.econbiz.de/10012763345
Cover Image
Gaucho Banking Redux
della Paolera, Gerardo - 2009
common thread runs through all these crises: the interaction of a weak, undisciplined, or corruptible banking sector, and … crony finance was dubbed gaucho banking' more than one hundred years ago. What happens when such a rotten structure …
Persistent link: https://www.econbiz.de/10012767777
Cover Image
Bank Quality, Judicial Efficiency and Borrower Runs : Loan Repayment Delays in Italy
Schiantarelli, Fabio - 2016
repayments (default). Firms in Italy defaulted more against banks with high levels of past losses. We control for borrower … fundamentals with firm-quarter fixed effects; thus, identification comes from a firm's choice to default against one bank versus … another, depending upon their health. This `selective' default increases where legal enforcement is weak. Poor enforcement …
Persistent link: https://www.econbiz.de/10012997894
Cover Image
Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries
Levine, Ross - 2015
Do stock markets act as a “spare tire” during banking crises, providing an alternative corporate financing channel and … mitigating the economic severity of banking crises? Using firm-level data in 36 countries from 1990 through 2011, we find that … the adverse consequences of banking crises on firm profitability, employment, equity issuances, and investment efficiency …
Persistent link: https://www.econbiz.de/10013030062