Showing 1 - 10 of 419
We study risk management in financial institutions using data on hedging of interest rate and foreign exchange risk. We find strong evidence that institutions with higher net worth hedge more, controlling for risk exposures, both across institutions and within institutions over time. For...
Persistent link: https://www.econbiz.de/10012889497
. However, a financial institution -- perhaps best viewed as a savings bank -- can provide partial insurance by generating a … the bank faces a tradeoff between provision of insurance and maintenance of private incentives …
Persistent link: https://www.econbiz.de/10013249178
This paper assesses the potential impact of FinTech on the finance industry, focusing on financial stability and access to services. I document first that financial services remain surprisingly expensive, which explains the emergence of new entrants. I then argue that the current regulatory...
Persistent link: https://www.econbiz.de/10012985592
I provide a quantitative interpretation of financial intermediation in the U.S. over the past 130 years. Measuring separately the cost of intermediation and the production of financial services, I find that: (i) the quantity of intermediation varies a lot over time; (ii) intermediation is...
Persistent link: https://www.econbiz.de/10013066115
Academics' view of the benefits of finance vastly exceeds societal perception. This dissonance is at least partly explained by an under-appreciation by academia of how, without proper rules, finance can easily degenerate into a rent-seeking activity. I outline what finance academics can do, from...
Persistent link: https://www.econbiz.de/10013029041
changes in investor trust, the model can account for the sharp decline of finance in the Great Depression, as well as its slow … trust and encouraged growth of financial income …
Persistent link: https://www.econbiz.de/10013080418
designed to build their trust in financial institutions. We find that the intervention: (a) significantly increased trust in …
Persistent link: https://www.econbiz.de/10013324654
We investigate how banking relationships that combine lending and underwriting services affect the terms of lending …
Persistent link: https://www.econbiz.de/10012760608
competitive interactions between banks and non-bank lenders (fintech firms). Trust enables lenders to have assured access to …We develop a theory of trust in lending, distinguishing between trust and reputation, and use it to analyze the … financing, whereas a loss of investor trust makes this access conditional on market conditions and lender reputation. Banks …
Persistent link: https://www.econbiz.de/10012915235
the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions--and particularly trust in banks, business and government--has declined … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …
Persistent link: https://www.econbiz.de/10013128268