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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
This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990. The data show similarities across crises during NPL build-ups but less so during NPL resolutions. We find a close relationship between NPL problems-elevated and unresolved...
Persistent link: https://www.econbiz.de/10012206258
We show that a reduction in lender of last resort (LOLR) policy uncertainty posi-tively affects bank lending and … privatemarket and central bank security valuations - plays a key role in the propagation ofthe shock to lending and the real economy. …
Persistent link: https://www.econbiz.de/10012426306
We propose the CoJPoD, a novel framework explicitly linking the cross-sectional and cyclical dimensions of systemic risk. In this framework, banking sector distress in the form of the joint probability of default of financial intermediaries (reflecting contagion from both direct and indirect...
Persistent link: https://www.econbiz.de/10013332831
how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio …
Persistent link: https://www.econbiz.de/10012061145
This paper studies optimal financial policy in a world where the financial sector can become excessively optimistic. I … decompose the welfare effects of bank capital regulation to demonstrate the effects of exuberance and its interaction with … evidence on the relationship between bank capital and risk-taking. Finally, I investigate the sensitivity of these insights …
Persistent link: https://www.econbiz.de/10012178343
framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …
Persistent link: https://www.econbiz.de/10012009213
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
which a bank may provide voluntary support to an impaired subsidiary using resources from a healthy subsidiary. While …
Persistent link: https://www.econbiz.de/10013328612
This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …
Persistent link: https://www.econbiz.de/10003973340