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In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce...
Persistent link: https://www.econbiz.de/10013064301
We examine the interactions of bank lending dynamics, ownership structures and crisis phenomena in the banking systems … 2010, we show that the impact of ownership structure on a bank's lending activities in CEE countries was conditional upon … indicates that bank-specific characteristics, such as deposit growth and profitability ratios, are important determinants of …
Persistent link: https://www.econbiz.de/10013028206
In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the choice of bank and firm …
Persistent link: https://www.econbiz.de/10010905863
cannot access public debt markets due to agency problems and cannot commit to a lending bank for a long relationship. RAS …'s investment and leverage compared to the case in which firms can commit to a lending relationship with the bank …
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We examine the international transmission of liquidity and capital shocks from multinational bank-holding companies to … their subsidiaries. Our findings are consistent with the studies that document the negative impact of parent bank fragility … on subsidiaries' lending. We further find that foreign bank lending is determined by different factors in developing …
Persistent link: https://www.econbiz.de/10013038455
We examine whether foreign-owned and government-owned banks in Central and Eastern Europe reacted differently during a domestic systematic banking crisis and the global financial crisis of 2008. Our panel dataset comprises data on more than 400 banks for the period 1994-2010. Our analysis shows...
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