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argue that the existing differences in interbank market usage can be explained by the trust of the market participants in …. Specifically, banks originating from a country that has lower level of trust tend to have lower interbank borrowing. Using a … proprietary dataset on bilateral exposures, we investigate the Euro Area interbank network and find the effect of trust relies on …
Persistent link: https://www.econbiz.de/10012422036
Central counterparty (CCP) initial margin models are procyclical by nature, and CCPs use antiprocyclicality (APC) tools to mitigate this. However, despite the widespread use of such tools, margin models of CCPs around the world reacted severely to the heightened volatility during the March 2020...
Persistent link: https://www.econbiz.de/10014541739
Persistent link: https://www.econbiz.de/10013359271
We empirically examine the Capital Purchase Program (CPP) used by the US government to bail out distressed banks with equity infusions during the Great Recession. We find strong evidence that a feature of the CPP - the government's ability to appoint independent directors on the board of an...
Persistent link: https://www.econbiz.de/10012648566
This paper is the national report for Germany prepared for the to the 20th General Congress of the International Academy of Comparative Law 2018 and gives an overview of the regulation of crowdfunding in Germany and the typical design of crowdfunding campaigns under this legal framework. After a...
Persistent link: https://www.econbiz.de/10011793660
We examine trust and trustworthiness of individuals with varying professional preferences and experiences. Our subjects … study business and economics in Frankfurt, the financial center of Germany and continental Europe. In the trust game … process. In a prediction game that is strategically equivalent to the trust game, the amount sent by first-movers was …
Persistent link: https://www.econbiz.de/10010368430
predictions from a formal model, we present evidence that households’ trust in financial advice only matters when their perceived …
Persistent link: https://www.econbiz.de/10011605342
invest is mainly influenced or driven by trust. Other variables, namely perceived risk, perceived ease of use, and security …
Persistent link: https://www.econbiz.de/10012254980
Research on 'trust' now forms a prominent part of the research agenda in history and the social sciences. Although this … research has generated useful insights, the idea of trust has been used so widely and loosely that it risks creating more … confusion than clarity. This essay argues that to the extent that scholars have a clear idea of what trust actually means, the …
Persistent link: https://www.econbiz.de/10010369194
We model the asset-opacity choice of an intermediary subject to rollover risk in wholesale funding markets. Greater opacity means investors form more dispersed beliefs about an intermediary's profitability. The endogenous benefit of opacity is lower fragility when profitability is expected to be...
Persistent link: https://www.econbiz.de/10011564697