Showing 1 - 10 of 135
This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …
Persistent link: https://www.econbiz.de/10010488964
We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …
Persistent link: https://www.econbiz.de/10012591729
Using the Bank for International Settlements (BIS) Locational Banking Statistics data on bilateral bank claims from … 1995 to 2014, we analyze the impact of monetary policy on cross-border bank flows. We find that monetary policy in a source … country is an important determinant of cross-border bank flows. In addition, we find evidence in favor of a cross …
Persistent link: https://www.econbiz.de/10011777908
I investigate how monetary policy transmits to mortgage rates via the mortgage market concentration channel for both traditional and shadow banks in the United States from 2009 to 2019. On average, shadow and traditional banks exhibit only a slight disparity in transmitting monetary shocks to...
Persistent link: https://www.econbiz.de/10014512429
I study the impact of banking market concentration and wholesale funding reliance on the transmission of monetary policy shocks to mortgage rates. I empirically demonstrate that in the United States, banks with higher reliance on wholesale funding in concentrated (competitive) deposit markets...
Persistent link: https://www.econbiz.de/10014293351
Countercyclical bank capital requirements have emerged as a popular regulatory tool to help smooth financial cycles …. The idea is to reduce capital requirements when exogenous shocks cause aggregate bank capital to decrease so that …-consistent capital regulation requires that bank capital is rebuilt gradually during financial crises. In particular, banks must be able …
Persistent link: https://www.econbiz.de/10014456622
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks,...
Persistent link: https://www.econbiz.de/10013466133
We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights. Domestic intermediaries compete for such cheap funding by carving out...
Persistent link: https://www.econbiz.de/10011304762
The paper employs a unique identification strategy that links survey data on household consumption expenditure to bank …-level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures …
Persistent link: https://www.econbiz.de/10010238950
This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the...
Persistent link: https://www.econbiz.de/10010254340