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Domestic prudential regulation can have unintended effects across borders and may be less effective in an environment where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013, this study shows that some regulatory changes indeed...
Persistent link: https://www.econbiz.de/10012982940
Have bank regulatory policies and unconventional monetary policies—and any possible interactions—been a factor behind … the recent “deglobalisation” in cross-border bank lending? To test this hypothesis, we use bank-level data from the UK … requirements tend to reduce international bank lending and some forms of unconventional monetary policy can amplify this effect …
Persistent link: https://www.econbiz.de/10012989730
We analyze a variant of the Diamond-Dybvig (1983) model of banking in which savers can use a bank to invest in a risky … project operated by an entrepreneur. The savers can buy equity in the bank and save via deposits. The bank chooses to invest … in a safe asset or to fund the entrepreneur. The bank and the entrepreneur face limited liability and there is a …
Persistent link: https://www.econbiz.de/10013053165
instruments to study international spillovers of prudential policy changes and their effects on bank lending growth. The … bank lending. Second, international spillovers vary across prudential instruments and are heterogeneous across banks. Bank …
Persistent link: https://www.econbiz.de/10012978107
Over the last 20 years, some financial events, such as devaluations or defaults, have triggered an immediate adverse chain reaction in other countries -- which we call fast and furious contagion. Yet, on other occasions, similar events have failed to trigger any immediate international reaction....
Persistent link: https://www.econbiz.de/10013221538
Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper: 1 … explores the determinants of fluctuations in U.S. bank claims on a broad set of countries. U.S. bank claims on Latin American … across emerging market regions. Moreover, unlike U.S. bank claims on industrialized countries, we find that claims on …
Persistent link: https://www.econbiz.de/10012787752
A large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale dollar funding, while raising...
Persistent link: https://www.econbiz.de/10013098138
regulations, we develop a parsimonious model of bank and market lending in domestic and foreign currency and derive four …
Persistent link: https://www.econbiz.de/10012910619
We estimate the impact of the extensity of macroprudential policies on the correlation of the policy interest rates between the center economies (CEs, i.e., the U.S., Japan, and the Euro area), and the peripheral economies (PHs). We find a more extensive implementation of macroprudential...
Persistent link: https://www.econbiz.de/10012941469
We investigate the origins and growth of the Financial Stability Mandate (FSM) to examine why bank supervisors, inside … changes in the FSM, (2) whether supervision should be conducted within the central bank or in independent agencies and (3 …) whether supervision should be rules- or discretion/principles-based. As histories of bank supervision are few, we focus on the …
Persistent link: https://www.econbiz.de/10013030142