This study examines whether the agency problem regarding credit risk is a useful corporate governance mechanism for controlling credit risk. For this purpose, we estimate the impact of internal control and agency problems on credit risk in commercial banks in Vietnam from 2009 to 2018. First, in...

The Reserve Bank of India (RBI) has stipulated the Prompt Corrective Action (PCA) Framework in order to ensure the adequacy of banks' internal control system and improve their quality. The PCA framework for Indian bank complies with the Core Banking Principles laid down by the Bank for...

The massive losses that banks incurred with the meltdown of the subprime mortgage market have raised concerns about their ability to continue lending to corporations. We investigate these concerns. We find that firms paid higher loan spreads during the subprime crisis.Importantly, the increase...

Many developing and emerging markets have high degrees of state bank ownership. In addition, the recent global financial crisis has led to significant state ownership of banking assets in developed countries such as the United Kingdom. These observations beg the question of whether the...

Many developing and emerging markets have high degrees of state bank ownership. In addition, the recent global financial crisis has led to significant state ownership of banking assets in developed countries such as the United Kingdom. These observations beg the question of whether the...

Over the years, U.S. banks have increasingly relied on the bond market to finance their business. This created the potential for a link between the bond market and the corporate sector whereby borrowers, including those that do not rely on bond funding, became exposed to the conditions in the...

The massive losses that banks have incurred with the meltdown of subprime mortgages have raised concerns with their ability to continue extending loans to corporations. In this paper, we attempt to ascertain these concerns by investigating if banks have changed their loan pricing policies in...

Firms hold less cash (i.e. internal-liquidity) when their local bank branching network is dense. The effect strengthens for small, opaque and financially constrained firms. Further, it weakens with distance and strengthens with urban vibrancy. Finally, firms located in dense local branch...

Basel III liquidity proposals are still "work in progress" as new versions of regulations appear, but general shape of two major new liquidity ratios (short term LCR – liquidity coverage ratio and medium-term NSFR – net stable funding ratio) seems to be established. In the paper LCR and NSFR...