Showing 1 - 10 of 206
We study bank supervision by combining a theoretical model that distinguishes supervision from regulation and a novel … supervision and use the model to interpret the relationship between supervisory efforts and bank characteristics observed in the … proportionally with bank size, suggesting the presence of technological economies of scale in supervision. The data also show …
Persistent link: https://www.econbiz.de/10011537999
In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is … value, and a risk measure, this paper develops a semi-parametric model for estimating the critical level of bank risk at …
Persistent link: https://www.econbiz.de/10010283427
A fundamental conclusion drawn from the recent financial crisis is that the supervision and regulation of financial … Program (SCAP), better known as the bank 'stress test,' is one example of how the macro- and microprudential perspectives can … reviews the key features of the SCAP and discusses how they can be leveraged to improve bank supervision in the future. …
Persistent link: https://www.econbiz.de/10010283502
identify plausibly exogenous variation in the intensity of supervision across large U.S. bank holding companies (BHCs), based … support the idea that supervision has a distinct role as a complement to regulation. …
Persistent link: https://www.econbiz.de/10011537998
We measure bank supervision using the database of supervisory issues, known as matters requiring attention or immediate … a bank faces, which may suggest capacity constraints in addressing multiple supervisory issues. Using computational … and are less correlated with bank observables. By categorizing questions asked by analysts at banks' quarterly earnings …
Persistent link: https://www.econbiz.de/10011538000
We estimate the cost of capital for the banking industry and find that while the cost of capital soared for banks in the financial crisis, after the passage of the Dodd-Frank Act, the value-weighted cost of capital for banks fell differentially more than did the cost of capital for nonbanks. The...
Persistent link: https://www.econbiz.de/10012144697
We argue that post-crisis bank regulation can explain large, persistent deviations from parity on basis trades … institutions, we show that the implied return on equity on such trades is considerably lower under post-crisis regulation. In … a global systemically important bank suffer significant declines in assets and returns relative to unlevered funds. Thus …
Persistent link: https://www.econbiz.de/10012144701
This paper examines market liquidity in the post-crisis era, in light of concerns that regulatory changes might have reduced banks' ability and willingness to make markets. We begin with a discussion of the broader trading environment, including a discussion of regulations and their potential...
Persistent link: https://www.econbiz.de/10011796439
well as bank risk-taking, growth, and operating costs. We use a difference-in-differences approach, making use of the fact … in large "jumbo" mortgages. We find no clear evidence of substitution in lending between bank and nonbank subsidiaries …, or effects on asset growth or bank noninterest expenses. …
Persistent link: https://www.econbiz.de/10012144700
had a measurable effect on the stock market valuation of the forty-two bank holding companies subject to the SEC order. I …
Persistent link: https://www.econbiz.de/10010283363