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Credit risk transfer and bank competition
Hakenes, Hendrik; Schnabel, Isabel - 2009
We present a banking model with imperfect competition in which borrowers’ access to credit is improved when banks are … able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of … expansion of loans to unprofitable firms, which in the limit offsets the welfare gains from CRT completely. -- Credit risk …
Persistent link: https://www.econbiz.de/10003883661
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Bank size and risk-taking under Basel II
Hakenes, Hendrik; Schnabel, Isabel - 2006
We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with imperfect competition and moral hazard, we show that the introduction of an internal ratings based (IRB) approach improves upon flat capital requirements if the approach is...
Persistent link: https://www.econbiz.de/10010366524
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Credit Risk Transfer and Bank Competition
Hakenes, Hendrik - 2009
We present a banking model with imperfect competition in which borrowers' access to credit is improved when banks are … able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of …
Persistent link: https://www.econbiz.de/10013155071
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Insider Lending, Conservatism, and Accounting Standards
Bigus, Jochen - 2017
Private firms often rely on insider lending, e.g. by banks. Insider lending is based on lending relationships that typically involve intertemporal loan pricing: losses from early years are recovered by information rents in later years, stemming from private information the inside lender has...
Persistent link: https://www.econbiz.de/10012973388
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Observable Reputation Trading
Hakenes, Hendrik; Peitz, Martin - 2006
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner's type, which reflects the quality of the good or...
Persistent link: https://www.econbiz.de/10010334019
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Umbrella Branding and the Provision of Quality
Hakenes, Hendrik; Peitz, Martin - 2006
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10010334039
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Umbrella branding and external certification
Hakenes, Hendrik; Peitz, Martin - 2008
In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...
Persistent link: https://www.econbiz.de/10010264839
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Umbrella branding and external certification
Hakenes, Hendrik (contributor); Peitz, Martin (contributor) - 2008
In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...
Persistent link: https://www.econbiz.de/10003730661
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Observable reputation trading
Hakenes, Hendrik; Peitz, Martin - 2006 - First version: July 21, 2003, this version: June 23, 2006
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner's type, which reflects the quality of the good or...
Persistent link: https://www.econbiz.de/10010365880
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Umbrella branding and the provision of quality
Hakenes, Hendrik; Peitz, Martin - 2006
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10010365881