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Our concern in this paper is two-fold: first to see whether the determinants of bank distress and failure have been any …-weighted counterparts as predictors, despite the focus on the later in the Basel framework. This paper examines bank distress within a large … predict bank failures and draw inferences about the stability of contributing bank characteristics. Our models incorporate …
Persistent link: https://www.econbiz.de/10011689962
The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are … authors analyse the impact of liquid asset holdings on bank profitability for a sample of large U.S. and Canadian banks … that this relationship varies depending on a bank's business model and the state of the economy. These results are …
Persistent link: https://www.econbiz.de/10010280016
bank. The results suggest that capital requirements may only be of second-order importance for banks? capital structures …
Persistent link: https://www.econbiz.de/10010298024
assess the relative importance of cross-border bank spillovers as compared to domestic bank spillovers. The results suggest …
Persistent link: https://www.econbiz.de/10011604573
approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of … ignores differences in bank product quality and design, as well as the attractiveness of innovations. We measure competition …
Persistent link: https://www.econbiz.de/10011604814
A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization … indeed increases bank efficiency. Second, building on these results, we examine the relation between the Boone indicator … bank soundness. We find evidence that competition robustly increases bank soundness, via the efficiency channel. …
Persistent link: https://www.econbiz.de/10011604978
deposits towards non-deposit liabilities. We find that unobserved time-invariant bank fixed effects are ultimately the most … important determinant of banks’ capital structures and that banks’ leverage converges to bank specific, time invariant targets. …
Persistent link: https://www.econbiz.de/10011605142
We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial...
Persistent link: https://www.econbiz.de/10011605238
this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal … monetary policy change on bank performance is also considered. The empirical analysis, using large panel datasets for the … rates by disaggregating down to the individual bank level. This is achieved by the use of a Local GMM technique that also …
Persistent link: https://www.econbiz.de/10011605279
This paper examines the quality of credit ratings assigned to banks in Europe and the United States by the three largest rating agencies over the past two decades. We interpret credit ratings as relative assessments of creditworthiness, and define a new ordinal metric of rating error based on...
Persistent link: https://www.econbiz.de/10011605529