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This paper shows that an increase in the Fed funds rate is associated with an increase in banks' unrealized losses due to their held-to-maturity (HTM) portfolios. This exposes banks to large uninsured deposit withdrawals as the depositors seek a flight-to-safety and, at the same time, to a...
Persistent link: https://www.econbiz.de/10014350542
bank loans to U.S. firms over the period of 1980-2003. We find that investors react positively to such announcements if the …'s headquarters state. Investor reaction is, in fact, the largest when the bank is foreign. Our evidence suggest that investors value … bank identities and reputation seem to matter a great deal …
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The impact of U.S. bank loan announcements on the stock prices of the corporate borrowers has been decreasing during …
Persistent link: https://www.econbiz.de/10010412303
model. Second, we study whether both returns and volatility of bank stock prices changes upon the disclosure of stress tests … correlation between bank abnormal returns or equity volatility and stress test performance, which experiences a steady increase …What is the impact of stress tests on bank stock prices? To answer this question we study the impact of the publication …
Persistent link: https://www.econbiz.de/10013342212
What is the impact of negative interest rates on bank lending and risk-taking? To answer this question we study the … changes in lending policies using the Euro area Bank Lending Survey and the Spanish Credit Register. Banks whose net interest …
Persistent link: https://www.econbiz.de/10012899513
Comparing banks to non-bank lenders, we investigate whether the geographical distance between lenders, borrowers and … period. The difference in loan spread when bank-borrower distance increases from zero to the median of about 900 miles is 17 …, geographical distance does not seem to have any effect on the loan spread of mortgages granted by non-bank lenders. Moreover, loans …
Persistent link: https://www.econbiz.de/10012134672
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fact, the largest when the bank is foreign. Our evidence suggest that investors value relationships with more competitive … applicable also to the European markets where regulatory and economic borders do not coincide and bank identities and reputation … seem to matter a great deal. -- Relationship banking ; bank organization ; bank origin ; loan announcement return …
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