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' vulnerability is evaluated based on probabilities of default, while loan losses to banks are quantified by means of the exposure at … amount of liquid assets that can cover their losses, and (iii) potential loans losses to banks stemming from the household …
Persistent link: https://www.econbiz.de/10013172456
high-deposit financed banks. Given the importance of relationship banking, the extended credit is granted mainly by smaller … banks and via existing credit relationships to firms and households. Banks lend more often to indebted customers and to …
Persistent link: https://www.econbiz.de/10013332415
loss by 80% because non-competitive banks internalize some of the burden. Conversely, subsidies are less effective in non …
Persistent link: https://www.econbiz.de/10014534977
-prudential policies. -- Liquidity ; Contagion ; Bailouts ; Regulation … explains why liquidity cannot easily be apprehended through a single statistics, and asks whether liquidity should be regulated … containment. Finally, the paper takes a macroeconomic perspective, discusses shortages of aggregate liquidity and analyses how …
Persistent link: https://www.econbiz.de/10008732226
During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
Persistent link: https://www.econbiz.de/10012137091
This paper investigates a model of strategic interactions in financial networks, where the decision by one agent on whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism introduced in the seminal contribution...
Persistent link: https://www.econbiz.de/10011812108
scale required to promote higher growth and boost employment. Among banks the public sector banks (PSBs) are burdened with …
Persistent link: https://www.econbiz.de/10011638458
submitted its report in 2013 and four of its members recorded dissenting notes. This paper examines the changes in regulation in …
Persistent link: https://www.econbiz.de/10011483647
2007, and especially in the euro area after 2010. That crisis triggered major changes to European financial regulation and …
Persistent link: https://www.econbiz.de/10011613840
Persistent link: https://www.econbiz.de/10014329183