Showing 1 - 10 of 151
We study rating shopping on the MBS market. Outside of AAA, losses were higher on single-rated tranches than multi-rated ones, and yields predict future losses for single-rated tranches but not for multi-rated ones. Conversely, ratings have less explanatory power for single-rated tranches. These...
Persistent link: https://www.econbiz.de/10013007289
In 2011, Colombia instituted a tax on repayment of bank loans, which increased the cost of short-term bank credit more … bank liquidity shocks …
Persistent link: https://www.econbiz.de/10012902316
Using exogenous deposit windfalls from oil and natural gas shale discoveries, we demonstrate that bank branch networks … help integrate U.S. lending markets. We find that banks exposed to shale booms increase their mortgage lending in non …
Persistent link: https://www.econbiz.de/10013083195
This paper shows that banks raising deposits in more concentrated markets have more funding stability, which enhances banks' ability to extend longer-maturity loans. We show that banks raising deposits in concentrated markets exhibit less pro-cyclical financing costs and profits, which in turn...
Persistent link: https://www.econbiz.de/10012865296
Relative performance evaluation (RPE) intensifies competitive pressure by tying executive compensation to the profits of rivals. We show that these contracts make loan syndication harder by reducing banks’ willingness to participate in loans underwritten by banks named in their RPE contracts....
Persistent link: https://www.econbiz.de/10013292848
This paper shows that securitization reduces the influence of bank financial condition on loan supply. Low-cost funding … and increased balance-sheet liquidity raise bank willingness to approve mortgages that are hard to sell (jumbo mortgages … the mortgage secondary market fostered by securitization has reduced the impact of local funding shocks on credit supply …
Persistent link: https://www.econbiz.de/10012466688
This paper shows that securitization reduces the influence of bank financial condition on loan supply. Low-cost funding … and increased balance-sheet liquidity raise bank willingness to approve mortgages that are hard to sell (jumbo mortgages … the mortgage secondary market fostered by securitization has reduced the impact of local funding shocks on credit supply …
Persistent link: https://www.econbiz.de/10012767441
We test whether measures of potential influence on regulators affect stress test outcomes. The large trading banks – those most plausibly ‘Too big to Fail' – face the toughest tests. In contrast, we find no evidence that either political or regulatory connections affect the tests. Stress...
Persistent link: https://www.econbiz.de/10012839207
As protectors of the safety and soundness of the banking system, banking supervisors are responsible for keeping banks' risk taking in check. The authors explain that franchise value - the present value of the stream of profits that a firm is expected to earn as a going concern - makes the...
Persistent link: https://www.econbiz.de/10014222808
increased credit to unaffected parts of the conforming-mortgage market. Banks responded by reallocating provision of speculative … mortgage credit across their local markets, which in turn affected their provision of small business credit. These adjustments …
Persistent link: https://www.econbiz.de/10014512063