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One reason why countries service their external debts is the fear that default might lead to shrinkage of international trade. If so, then creditors should systematically lend more to countries with which they share closer trade links. We develop a simple theoretical model to capture this...
Persistent link: https://www.econbiz.de/10005789181
The foreign bank was a fundamental ground throughout the transformation of the credit-driven money relations in Latin … amplification of its links with the foreign policy and favoured establishing a private bank system in the countries with greatest …
Persistent link: https://www.econbiz.de/10008509678
Does targeted financial development favor small firms or large ones? And how do resulting changes in the distribution of firm size affect aggregate outcomes? We assess the macroeconomic implications of known stylized facts from the finance literature regarding firm size and financial frictions...
Persistent link: https://www.econbiz.de/10008485540
We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … small open economy. Increasing bank efficiency and reducing bond transaction costs both increase welfare but have opposite … openness increases firms’ relative demand for bond versus bank financing. We identify a financial switching channel for gains …
Persistent link: https://www.econbiz.de/10008485542
its capital markets. However, the prompt response by the government and the central bank stabilised Korea’s financial …
Persistent link: https://www.econbiz.de/10008492403
portfolio production that was estimated for a sample of highest-level U.S. bank holding companies in Hughes, Lang, Mester, and … experience clear gains in their financial performance, but society also benefits from the enhanced bank safety that follows from …
Persistent link: https://www.econbiz.de/10005838120
The economic crisis which is affecting all companies and public institutions has proven once more that the banks are the primary force for an economic growth or for a recession. This major economic crisis has begun, in the first instance, at the banks level, there for in the banking system has...
Persistent link: https://www.econbiz.de/10008462782
The economy of decline, with the type of problems that characterised a big amount of the economic activity of the 1930s, aspects that have not been met until now, has made a forceful comeback, taking into consideration the fact that 15-16 years ago nobody would have thought that the modern...
Persistent link: https://www.econbiz.de/10008470201
The global crisis exposed weaknesses in the Hungarian financial system that pose risks to financial stability. Excessive risk-taking by banks and households had been masked by relatively stable exchange rates, the expected early adoption of the euro and unusually lax credit conditions in...
Persistent link: https://www.econbiz.de/10008552864
This paper analyses bank exit (ie reorganisation and liquidation) legislation in selected financial centres: New York …, London, Frankfurt, Helsinki and Tokyo. The focus is on bank exit legislation applicable to commercial banks. The legislation … is analysed from the perspective of bank stakeholders, ie bank creditors, depositors and bank shareholders. The analysis …
Persistent link: https://www.econbiz.de/10005134685