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In this paper we investigate the relationship between changes in risk and changes in leverage for a panel of Swiss banks. Using market data for risk and both accounting and market data for capital for the period between 1990 and 2002, we find a positive correlation between changes in capital and...
Persistent link: https://www.econbiz.de/10011430035
This paper analyzes the contagion effects associated with the failure of Silicon Valley Bank (SVB) and identifies bank … held-to-maturity securities, bank size, and cash holdings had a significant impact, while better-quality assets or holdings … rate hikes nor risks linked to bank size. While mid-sized banks experienced particular stress immediately after the SVB …
Persistent link: https://www.econbiz.de/10014540982
geographical regions. To explore this issue, we use a unique data set of the individual bank loan portfolios of 983 German banks …
Persistent link: https://www.econbiz.de/10013370027
Using count data on the number of bank failures in US states during the 1960 to 2006 period, this paper endeavors to … instruments to absorb potential endogeneity between the number of bank failures and economic and regulatory conditions. Results … suggest that bank failures are not merely self-fulfilling prophecies but relate systematically to inflation as well as to …
Persistent link: https://www.econbiz.de/10011430078
to acceptable levels. Unfortunately, this review of the literatures on the relationship of risk to bank chief operating … officer and bank employee compensation suggest both have some potential but that significant concerns remain in both cases. At …
Persistent link: https://www.econbiz.de/10012030288
In recent years, regulators have increased their focus on the capital adequacy of banking institutions to enhance the stability of the financial system. The purpose of the present paper is to shed some light on whether and how Swiss Banks react to constraints placed by the regulator on their...
Persistent link: https://www.econbiz.de/10011430015
, however, the bank can readjust the level of risk after the deposit rate is contracted, market discipline leads to an increase …
Persistent link: https://www.econbiz.de/10011430018
We analyze optimal risk management strategies for a regulatory restricted bank financed with deposits and equity in an … infinite horizonmodel. The bank has a positive franchise value from rents coming from deposit related services (liquidity … franchise value and the liquidation costs in case of a bank run give the bank a motivation for risk management. The franchise …
Persistent link: https://www.econbiz.de/10005859100
We argue that China's rising shadow banking was inextricably linked to potential balancesheet risks in the banking system. We substantiate this argument with three didactic findings: (1) commercial banks in general were prone to engage in channeling risky entrusted loans; (2) shadow banking...
Persistent link: https://www.econbiz.de/10011776811
During the recent financial crisis, the Federal Reserve implemented a series of extraordinary and unconventional policies to alleviate the impact of the crisis on financial markets and the economy. In this paper, we examine the effects of these policies on broad financial market conditions,...
Persistent link: https://www.econbiz.de/10010292196