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Are CoCo bonds a good substitute for equity? : evidence from European banks

Hau, Harald; Hrasko, Gabriela - 2018

CoCo bonds provides the same reduction in bank default risk as the corresponding issuance of common equity by analyzing the … premium reduction in (single name) credit default swaps (CDS) around the corresponding issuance announcement events. We find … that the default risk reduction associated with issuance crucially depends on the CoCo bond's design features: Only CoCo …

Persistent link: https://www.econbiz.de/10011937107

Countercyclical foreign currency borrowing : Eurozone firms in 2007-2009

Bacchetta, Philippe; Merrouche, Ouarda - 2015

Despite international financial disintegration, we document a dramatic increase in dollar borrowing among leveraged Eurozone corporates during the Great Financial Crisis. Using loan-level data, we trace this increase to the twin crisis in the credit market and in funding markets. The reduction...

Persistent link: https://www.econbiz.de/10011507853

Bank loan announcements and borrower stock returns before and during the recent financial crisis

Li, Chunshuo; Ongena, Steven - 2014 - This Draft: March, 2014

The impact of U.S. bank loan announcements on the stock prices of the corporate borrowers has been decreasing during the two last decades with estimated two-day cumulative abnormal returns slipping from almost 200 basis points in the beginning of the 1980s to close to zero by the turn of the...

Persistent link: https://www.econbiz.de/10010412303

Taxing banks leverage and syndicated lending : a cross-country comparison

Burietz, Aurore; Ongena, Steven; Picault, Matthieu - 2022

Between 2010 and 2012 and with bank stability as the ultimate target, five European countries implemented a tax levy on banks' liabilities thereby decreasing the cost of equity relative to the cost of debt. Using a difference-in-differences approach we assess the impact of this tax levy on...

Persistent link: https://www.econbiz.de/10013168993

FinTech credit and entrepreneurial growth

Hau, Harald; Huang, Yi; Shan, Hongzhe; Sheng, Zixia - 2021

Based on automated credit lines to more than two million vendors trading on Alibaba’s online retail platform, we show how the take-up of FinTech credit varies with the entrepreneur’s bank distance. Proximity to the branches of the five largest stateowned banks correlates positively with the...

Persistent link: https://www.econbiz.de/10012612853

Bank credit and market-based finance for corporations : the effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2021

We study the effects of diversifying funding sources on the financing conditions for firms. We exploit a regulatory reform that took place in Italy in 2012, i.e. the introduction of ‘minibonds’, which opened a new market-based funding opportunity for unlisted firms. Using the Italian Credit...

Persistent link: https://www.econbiz.de/10012614108

The impact of the SBA funding programs on the distance and pricing of loans to small businesses

Gupta, Manish; Ongena, Steven - 2022 - This draft: April 13, 2022

What is the impact of Small Business Administration Preferred Lenders Program (PLP) on the distance between banks and small businesses and the pricing of the loans granted? We test predictions from a stylized transportation cost model on 7(a) loan data from 2008 to 2019. We find that non-PLP...

Persistent link: https://www.econbiz.de/10013192082

The impact of monetary conditions on bank lending to households

Gyöngyösi, Győző; Ongena, Steven; Schindele, Ibolya - 2021 - This Draft: September 13, 2021

We study how monetary conditions change the supply by banks of mortgage credit to households. We exploit the widespread presence of foreign currency mortgages in Hungary and study this country`s comprehensive credit registry. Changes in monetary conditions not only affect the supply of credit in...

Persistent link: https://www.econbiz.de/10012643018

The countercyclical capital buffer and the composition of bank lending

Auer, Raphael A.; Matyunina, Alexandra; Ongena, Steven - 2021

Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...

Persistent link: https://www.econbiz.de/10012643066

Bank credit and market-based finance for corporations : the effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2020

Does a diversification of funding sources affect the financing conditions for firms? To answer this question we study a regulatory reform which allowed unlisted firms to issue minibonds. Using the Italian Credit Register, we compare new loans granted to issuer firms with new loans concurrently...

Persistent link: https://www.econbiz.de/10012419623