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bank's financial condition deteriorates, depositors have an incentive to withdraw their funds, and corporations will find … over the last two decades to a deterioration in the performance of their bank. We find that during recessions, in … to borrower-, bank-, and credit-line-specific controls as well as bank-fixed effects, show that banks' provision of …
Persistent link: https://www.econbiz.de/10013096656
between these vehicles and lead banks. CLOs that have a relationship with the lead bank of the renegotiated loan are strong … fund not only their portion of the loan increase, but also the portion that was supposed to be funded by the lead bank. Our … findings highlight the previously unrecognized role of the growing presence of non-bank lenders in corporate lending. …
Persistent link: https://www.econbiz.de/10011576363
of bank regulatory capital. Our results show that following Basel I, undrawn fees and all-in-drawn credit spreads on …
Persistent link: https://www.econbiz.de/10011868462
increasing competition that erodes its charter value. When under these conditions the bank chooses its capital to maximize … explaining banks' market values. In this paper we present a model of a bank with fixed-rate deposit insurance that faces …
Persistent link: https://www.econbiz.de/10011868481
This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the...
Persistent link: https://www.econbiz.de/10010254340
scenario with the largest estimates coming from the NGFS (2022a) disorderly transition scenario, where the average bank …
Persistent link: https://www.econbiz.de/10014355728
The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to set aside capital when they extended commitments with maturities in excess of one year, short-term commitments were not subject to a capital requirement. We use this difference to...
Persistent link: https://www.econbiz.de/10012839743
increasing competition that erodes its charter value. When under these conditions the bank chooses its capital to maximize … explaining banks' market values. In this paper we present a model of a bank with fixed-rate deposit insurance that faces …
Persistent link: https://www.econbiz.de/10012916403
of bank regulatory capital. Our results show that following Basel I, undrawn fees and all-in-drawn credit spreads on …
Persistent link: https://www.econbiz.de/10012916405
decline in loan maturity is bank driven. In line with this premise, we find that the slope of the loan yield curve becomes …
Persistent link: https://www.econbiz.de/10013006666