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The Effects of Usury Ceilings on Consumers Welfare: Evidence from the Microcredit Market in Colombia
Capera Romero, Laura - 2021
Interest rate caps, also called usury ceilings, are a widely used policy tool to protect consumers from excessive charges by loan providers. However, they are often cited as a barrier for the advancement of financial inclusion, as they may reduce the incentives to provide loans to lower-income...
Persistent link: https://www.econbiz.de/10012606021
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Market Structure and the Pricing of New Products: A Nested Logit Approach with Asymmetric Firms
Bleker, Sylvia; Behrens, Christiaan; Koster, Paul; … - 2014
This article investigates competition in a market with an emerging technology using a discrete choice model to analyze demand and welfare. We focus on industry structure and investigate the impact of different market structures on demand for the new technology and on welfare. The car market...
Persistent link: https://www.econbiz.de/10010491372
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On the Effects of Suggested Prices in Gasoline Markets
Faber, Riemer P. - 2009
This article analyzes the role of suggested prices in the Dutch retail market for gasoline. Suggested prices are announced by large oil companies with the suggestion that retailers follow them. There are at least two competing rationales for the existence of suggested prices: they may either...
Persistent link: https://www.econbiz.de/10012720089
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State-aided Price Coordination in the Dutch Mortgage Market
Dijkstra, Mark A.; Schinkel, Maarten-Pieter - 2019
We show how price leadership bans, imposed as part of the European Commission's State aid control on all main mortgage … providers except the largest bank, shifted the Dutch mortgage market from a competitive to a collusive price leadership … full percentage point above the Eurozone average. We derive equilibrium best-response functions, identify the price …
Persistent link: https://www.econbiz.de/10012114767
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On Risk, Leverage and Banks: Do highly Leveraged Banks take on Excessive Risk?
Koudstaal, Martin; van Wijnbergen, Sweder - 2012
portfolio take on more risk. Banks whose share price has slumped tend to gamblefor resurrection by increasing the riskiness of …
Persistent link: https://www.econbiz.de/10010326471
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Convertible Bonds and Bank Risk-Taking
Martynova, Natalya; Perotti, Enrico - 2012
We study the effect of going-concern contingent capital on bank risk choice. The possibility of debt for equity conversion forces deleveraging in highly levered states, when risk incentives are worse. The additional equity reduces endogenous risk shifting by diluting returns in high states. An...
Persistent link: https://www.econbiz.de/10010326507
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Insecure Debt
Perotti, Enrico; Matta, Rafael - 2015
Does demand for safety create instability ? Secured (repo) funding can be made so safe that it never runs, but shifts risk to unsecured creditors. We show that this triggers more frequent runs by unsecured creditors, even in the absence of fundamental risk. This effect is separate from the...
Persistent link: https://www.econbiz.de/10011288387
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Bank Deregulation, Competition and Economic Growth: The US Free Banking Experience
Ager, Philipp; Spargoli, Fabrizio - 2013
We exploit the introduction of free banking laws in US states during the 1837-1863 period to examine the impact of removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic stability in this period, we are able to isolate the...
Persistent link: https://www.econbiz.de/10010328342
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The Effects of Liquidity Regulation on Bank Assets and Liabilities
Duijm, Patty; Wierts, Peter - 2014
Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co-integration of liquid assets and liabilities, to...
Persistent link: https://www.econbiz.de/10010377181
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Shadow Banking and Traditional Bank Lending: The Role of Implicit Guarantees
Gornicka, Lucyna - 2014
Bank holding companies (BHCs) invest in risky projects through bank entities or sell projects for a fee, thus engaging in shadow banking. BHCs can increase their fee income by guaranteeing sold projects with a recourse to the bank's balance sheet. When the expected guarantee repayments depend on...
Persistent link: https://www.econbiz.de/10010377225