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average bank to grant more loans to risky firms. We also find that the strength of the bank's balance-sheet is important: less … specifications we control for both observed and unobserved firm and bank heterogeneity by using financial statement information and … firm, bank and time fixed effects. …
Persistent link: https://www.econbiz.de/10012143883
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
change much of the banks' behavior and incentives. In particular, banking regulation did not face the nexus profitability …-riskiness. Based on Minsky's financial instability hypothesis, we discuss the literature on banks' profitability and its relation to … the originate-to-distribute model. We also propose a different strategy for banking regulation, based on a profitability …
Persistent link: https://www.econbiz.de/10014474498
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
We explore how a relatively small amount of heterogeneous securities created turmoil in financial markets in much of the world in 2007 and 2008. The drivers of the financial turmoil and the financial crisis of 2008 were heterogeneous securities that were hard to value. These securities created...
Persistent link: https://www.econbiz.de/10010292330
explain runs. We show that in the absence of sequential service runs can easily occur whenever bank-funded investments are …
Persistent link: https://www.econbiz.de/10012030272
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
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
In the United States and the European Union (EU), political incentives to oppose cross-border banking have been strong in spite of the measurable benefits to the real economy from breaking down geographic barriers. Even a federal-level supervisor and safety net are not by themselves sufficient...
Persistent link: https://www.econbiz.de/10011460623
Textual analysis of the NBER Working Papers published during 1999-2016 is done to assess the effects of the 2007-2009 crisis on the academic literature. The volume of crisis-related WPs is counter-cyclical, lagging the financial-instability-index. WPs by the Monetary-Economics, Asset-Pricing,...
Persistent link: https://www.econbiz.de/10012387266