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bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until … offset if drawdowns are expected to be left on deposit at the same bank, which happened at some of the largest banks during …
Persistent link: https://www.econbiz.de/10014226104
Persistent link: https://www.econbiz.de/10014246457
typical bank loan maturities; (ii) incorporate bank-lending responses to climate risks; (iii) assess the adequacy of climate …
Persistent link: https://www.econbiz.de/10014250115
of deposit insurance as a function of capital-asset ratio for a bank with demand liabilities and longer term, default …
Persistent link: https://www.econbiz.de/10012478901
We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank …
Persistent link: https://www.econbiz.de/10012457908
exposure in bad times. We apply this idea to bank risk measurement. We find that banks with high accounting return on equity … triggered by the collapse of Silicon Valley Bank. ROE predicts systematic tail risk much better than conventional measures based …
Persistent link: https://www.econbiz.de/10014337867
Financial safety nets are incomplete social contracts that assign responsibility to various economic sectors for preventing, detecting, and paying for potentially crippling losses at financial institutions. This paper uses the theories of incomplete contracts and sequential bargaining to...
Persistent link: https://www.econbiz.de/10012465955
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/10012479649
. Finally, for Europe we assess the relative importance of cross-border bank spillovers as compared to domestic bank spillovers …
Persistent link: https://www.econbiz.de/10012466974
monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …
Persistent link: https://www.econbiz.de/10012456534