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A new capital regulation for large financial institutions

Hart, Oliver D.; Zingales, Luigi - 2009

We design a new, implementable capital requirement for large financial institutions (LFIs) that are too big to fail. Our mechanism mimics the operation of margin accounts. To ensure that LFIs do not default on either their deposits or their derivative contracts, we require that they maintain an...

Persistent link: https://www.econbiz.de/10008840030

Business tax policy under default risk

Comincioli, Nicola; Vergalli, Sergio; Panteghini, Paolo - 2019

In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax...

Persistent link: https://www.econbiz.de/10012006573

Debt and transfer pricing: implications on business tax policy

Comincioli, Nicola; Panteghini, Paolo; Vergalli, Sergio - 2020

In this article we introduce model to describe the behavior of a multinational company (MNC) that operates transfer pricing and debt shifting, with the purpose of incrementing its value, intended as the sum of equity and debt. We compute, in a stochastic environment and under default risk, the...

Persistent link: https://www.econbiz.de/10012306718

Bank leverage, welfare, and regulation

Admati, Anat R.; Hellwig, Martin - 2018 - Revised November 19, 2018

Persistent link: https://www.econbiz.de/10011942146

Financial Sector Legislative Reforms Commission (FSLRC) & financial sector regulation in India

Bhagwati, Jaimini; Khan, M. Shuheb; Bogathi, … - 2016

The Financial Sector Reforms Commission (FSLRC) which was set up in 2011 by the Ministry of Finance was mandated to study existing legislation and financial sector regulatory practices in India and to propose improvements. The FSLRC submitted its report in 2013 and four of its members recorded...

Persistent link: https://www.econbiz.de/10011483647

Taxation when markets are not competitive : evidence from a loan tax

Brugués, Felipe; De Simone, Rebecca - 2024

generalizes bank competition theories, including Bertrand-Nash competition, credit rationing, and joint-maximization. While we …

Persistent link: https://www.econbiz.de/10014534977

Off-balance sheet activities, inefficiency and market power of U.S. banks

Wheelock, David C.; Wilson, Paul W. - 2019

The Lerner index is widely used to assess firms' market power. However, estimation and interpretation present several challenges, especially for banks, which tend to produce multiple outputs and operate with considerable inefficiency. We estimate Lerner indices for U.S. banks for 2001-18 using...

Persistent link: https://www.econbiz.de/10011998070

Bank panics and scale economies

Andolfatto, David; Nosal, Ed - 2017

A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand … deposits. From the standpoint of theory in the tradition of Diamond and Dybvig (1983) and Green and Lin (2003), it is … surprisingly di¢ cult to generate bank panic equilibria if one allows for a plausible degree of contractual flexibility. A common …

Persistent link: https://www.econbiz.de/10011691431

Regulatory competition in capital standards with selection effects among banks

Haufler, Andreas; Maier, Ulf - 2016

Persistent link: https://www.econbiz.de/10011548082

A capital adequacy buffer model

Allen, David E.; McAleer, Michael; Powell, Robert; … - 2013

Persistent link: https://www.econbiz.de/10010211227