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Banks’ Internal Capital Markets and Deposit Rates
Ben-David, Itzhak - 2015
. Using branch-level deposit rate data, we find little evidence for market discipline as rates are similar across bank … correlated with loan growth in other states in which their bank has some presence, suggesting internal capital markets help … reallocate the bank's funding …
Persistent link: https://www.econbiz.de/10013016009
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Banking on Deposits : Maturity Transformation Without Interest Rate Risk
Drechsler, Itamar - 2018
We show that maturity transformation does not expose banks to significant interest rate risk|it hedges it. This is due to banks' deposit franchise. The deposit franchise gives banks substantial market power over deposits, allowing them to pay deposit rates that are low and insensitive to market...
Persistent link: https://www.econbiz.de/10012919327
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Self Control and Commitment : Can Decreasing the Liquidity of a Savings Account Increase Deposits?
Beshears, John - 2015
If individuals have self-control problems, they may take up commitment contracts that restrict their spending. We experimentally investigate how contract design affects the demand for commitment contracts. Each participant divides money between a liquid account, which permits unrestricted...
Persistent link: https://www.econbiz.de/10013017088
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Low Interest Rates, Market Power, and Productivity Growth
Liu, Ernest - 2019
This study provides a new theoretical result that a decline in the long-term interest rate can trigger a stronger investment response by market leaders relative to market followers, thereby leading to more concentrated markets, higher profits, and lower aggregate productivity growth. This...
Persistent link: https://www.econbiz.de/10012893599
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When Does it Pay to Delay Social Security? The Impact of Mortality, Interest Rates, and Program Rules
Shoven, John B. - 2013
Social Security benefits may be commenced at any time between ages 62 and 70. As individuals who claim later can, on average, expect to receive benefits for a shorter period, an actuarial adjustment is made to the monthly benefit to reflect the age at which benefits are claimed. In earlier work...
Persistent link: https://www.econbiz.de/10013090660
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Why Did U.S. Banks Invest in Highly-Rated Securitization Tranches?
Erel, Isil - 2011
-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
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The Market for Bank Stocks and the Rise of Deposit Banking in New York City, 1866-1897
Rousseau, Peter L. - 2010
that centers on the existence of an increasingly efficient market for bank shares. The stock market was important because …
Persistent link: https://www.econbiz.de/10013147592
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Dynamic Banking and the Value of Deposits
Bolton, Patrick; Li, Ye; Wang, Neng; Yang, Jinqiang - 2022
We propose a dynamic theory of banking where the role of deposits is akin to that of productive capital in the classical q-theory of investment. As a cheap source of leverage, deposits typically create value for banks, but the marginal q of deposits can be negative. Deposit accounts commit banks...
Persistent link: https://www.econbiz.de/10014238859
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Banking Without Deposits : Evidence from Shadow Bank Call Reports
Jiang, Erica; Matvos, Gregor; Piskorski, Tomasz; Seru, Amit - 2022
Is bank capital structure designed to extract deposit subsidies? We address this question by studying capital structure … banks finance themselves primarily with short-term debt and originate long-term loans. However, shadow bank debt is provided … primarily by informed and concentrated lenders. (4) Shadow bank leverage increases substantially with size, and the …
Persistent link: https://www.econbiz.de/10013309721
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Land and Credit : A Study of the Political Economy of Banking in the United States in the Early 20th Century
Rajan, Raghuram G. - 2010
We thank Lakshmi Aiyar, Shawn Cole, Stijn Claessens, Oded Galor, Adair Morse, Mark Rosenzweig, Jeremy Stein, as well as participants in seminars at the IMF, the NBER Political Economy, Corporate Finance, and Growth Workshops, M.I.T., Northwestern University, the University of Chicago, the WFA...
Persistent link: https://www.econbiz.de/10013152442