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We survey the extant literature on the effects of both a bank's organizational structure and the physical distance separating it from the lender on lending decisions. Banks do engage in spatial pricing, where the underlying mechanism can be both transportation costs and information asymmetries....
Persistent link: https://www.econbiz.de/10012729940
compare the two bank types on the basis of cost efficiency. We decompose cost efficiency into a persistent and a residual … estimates show community banks to exhibit a 4.9% higher efficiency compared to their non-community counterparts. The … regulatory front. Size is non-linearly related to efficiency and large community banks are the most efficient. A strong positive …
Persistent link: https://www.econbiz.de/10012840017
This paper examines how efficiency dynamics of Islamic and conventional banks compare and how they are converging … both steady state efficiency and the speed of convergence of Islamic and conventional banks are similar. A non … across countries, which could explain the plurality in conclusions in the Islamic/conventional bank efficiency debate. We …
Persistent link: https://www.econbiz.de/10012177418
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How do banks respond to changes in capital requirements as a result of the stress tests? Does the disclosure of stress test results matter? To answer these questions, we study the impact of European stress tests on banks' lending, their corresponding risk-taking, the ensuing effect on their...
Persistent link: https://www.econbiz.de/10013368009
We study how monetary conditions change the supply by banks of mortgage credit to households. We exploit the widespread presence of foreign currency mortgages in Hungary and study this country's comprehensive credit registry. Changes in monetary conditions not only affect the supply of credit in...
Persistent link: https://www.econbiz.de/10014278255
What is the impact of stress tests on bank stock prices? To answer this question we study the impact of the publication of the EU-wide stress tests in 2014, 2016, 2018, and 2021 on the first (λ) and second (δ) moment of equity returns. First, we study the effect of the disclosure of stress...
Persistent link: https://www.econbiz.de/10014278311
What is the impact of a sudden and sizeable increase in bank capital requirements on the lending activity by directly affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference-in-differences methodology around the capital exercise...
Persistent link: https://www.econbiz.de/10014420705