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distorted the choices of financial intermediaries ex-ante (inducing them to rely too much and too quickly on liquidity for …
Persistent link: https://www.econbiz.de/10008498520
Central banks (CBs) in Europe and the US have been providing virtually unlimited amounts of liquidity to banks for … justified? I present a model in which a commercial bank, subject to idiosyncratic liquidity shocks, faces uncertainty about … chooses higher liquidity reserves in equilibrium. Furthermore, increasing bank capital and penalty rates make it easier to …
Persistent link: https://www.econbiz.de/10011077967
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This paper highlights the importance of institutions in explaining the variation of investment rates and of two measures of bank deposits across countries. A general index of economic security is created for 130 countries. Its explanatory power is compared with measures of specific institutional...
Persistent link: https://www.econbiz.de/10012782219
This paper analyzes bank discrimination against private firms in a transition country. Theoretically, we show that banks may discriminate for non-profit reason, but that this discrimination diminishes with the incentives and human capital of bank managers. Employing matching bank-firm data from...
Persistent link: https://www.econbiz.de/10012785814
In the course of ordinary business, commercial banks frequently encounter entrepreneurs seeking loans for the purpose of financing new or continuing projects. These entrepreneurs are frequently unrealistic, their perception having been biased by wishful thinking. Bankers are left with a...
Persistent link: https://www.econbiz.de/10012790735
This article addresses whether yield spread premiums are harmful to consumers and, if so, how the practice might be regulated. Yield spread premiums are payments made to mortgage brokers by lending institutions based on the rate of interest charged on a borrower's loan, with higher interest...
Persistent link: https://www.econbiz.de/10012764852
Banks play a special role as providers of informative signals about the quality and value of their borrowers. Such signals, however, may have a quality of their own as the banks' selection and monitoring abilities may differ. Using an event study methodology, we study the importance of the...
Persistent link: https://www.econbiz.de/10012764919
This paper analyses the behaviour of banks' customers when a new technology (internet banking) is introduced. The determinants of consumer adoption of internet banking are characterised using survey data from Korea in both static and dynamic frameworks. There is evidence that adoption of...
Persistent link: https://www.econbiz.de/10012709729