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This paper analyzes the private production of safe assets and its implications for financial stability. Financial intermediaries (FIs) originate loans, exert hidden effort to improve loan quality, and create safe assets by issuing debt backed by the safe payments from (i) their own loans and...
Persistent link: https://www.econbiz.de/10015340223
effective to increase bank resilience to sectoral risks, limiting spillover effects. LTI limits are superior to LTV limits in …
Persistent link: https://www.econbiz.de/10015176875
significance. Our results do not point to a major role of newly introduced bank levies in explaining cross-border banking …
Persistent link: https://www.econbiz.de/10011802126
We assess the impact on bank bond holdings of regulatory changes in the requirements for bail-inable liabilities …) induced banks to increase their holdings of eligible bank bonds, especially if issued by other banks. The requirement for own … debt issued by global systemically important banks. Finally, we find evidence of increased within-country bank …
Persistent link: https://www.econbiz.de/10013485858
, over a decade and a half preceding the pandemic, bank dividend payouts were adjusted in line with the three motivations …
Persistent link: https://www.econbiz.de/10013490802
Persistent link: https://www.econbiz.de/10011288692
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We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future … the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …
Persistent link: https://www.econbiz.de/10011910725
Persistent link: https://www.econbiz.de/10011349808
of bank failures. We find that riskadjusted premiums reduce moral hazard, enabling the policymaker to increase deposit … insurance coverage by 3 percentage points and decrease the share of expected annual bank failures from 0.66% to 0.16%. The model …
Persistent link: https://www.econbiz.de/10013332900