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Sovereign default risk and banks in a monetary union
Uhlig, Harald - 2013 - This revision: August 12, 2013
This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank, and that their sovereign partially backs up any...
Persistent link: https://www.econbiz.de/10009786077
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Repo and reverse repo activity of European banks : market activity, accounting and disclosure
Löw, Edgar; Riegel, Annika Patricia Michelle - 2020
simplicity and flexibility. The European repo market is quite concentrated, as 80% of the transactions is conducted be-tween the … top 20 banks and 61.9% of the collaterals used in the European repo market are originated in the Eurozone. Especially, for … Europe the repo market is more important than ever, as it reached an all-time high of EUR 7,351 billion in June 2018. Even …
Persistent link: https://www.econbiz.de/10012436674
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Liquidity creation without banks
Kucinskas, Simas - 2015
I revisit the Diamond-Dybvig model of liquidity insurance in the presence of hidden trades. The key result is that in this environment deposit-taking banks are not necessary for the efficient provision of liquidity. Mutual funds are constrained efficient when supplemented with the same...
Persistent link: https://www.econbiz.de/10011327337
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Interbank credit exposures and financial stability
Schneorson, Oren - 2022
This paper investigates how interbank credit exposures affect financial stability. Policy makers often see such exposures as undermining stability by exacerbating cascading losses through the financial system. I develop a model that features a trade-off between cascading losses and risk-sharing....
Persistent link: https://www.econbiz.de/10013350529
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Market power in banking
Carletti, Elena; Leonello, Agnese; Marquez, Robert - 2024
Bank market power, both in the loan and deposit market, has important implications for credit provision and for financial stability. This article discusses these issues through the lens of a simple theoretical framework. On the asset side, banks choose the quality and quantity of loans. On the...
Persistent link: https://www.econbiz.de/10014484222
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An Incentive Problem in the Dynamic Theory of Banking
Thadden, Ernst-Ludwig von - 2000
This paper develops a continuous-time model of liquidity provision by banks, in which customers can deposit and withdraw their funds strategically ...
Persistent link: https://www.econbiz.de/10005843240
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Central bank digital currency and bank intermediation : exploring different approaches for assessing the effects of a digital euro on euro area banks
Adalid, Ramón; Álvarez-Blázquez, Álvaro; … - 2022
In July 2021 the Eurosystem decided to launch the investigation phase of the digital euro project, which aims to provide euro area citizens with access to central bank money in an increasingly digitalised world. While a digital euro could offer a wide range of benefits, it could prompt changes...
Persistent link: https://www.econbiz.de/10013198349
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Dividend signaling and bank payouts in the Great Financial Crisis
Juelsrud, Ragnar Enger; Nenov, Plamen T. - 2022
We study the dividend payouts of U.S. banks during the 2008 financial crisis. Using a difference-in-differences methodology, we shows that banks with higher share of short-term liabilities to total liabilities, which were thus more exposed to the rollover crisis that took place in 2008,...
Persistent link: https://www.econbiz.de/10013440417
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Regulation, credit risk transfer, and bank lending
Pausch, Thilo; Welzel, Peter - 2011
We integrate Basel II (and III) regulations into the industrial organization approach to banking and analyze lending behavior and risk sensitivity of a risk-neutral bank. The bank is exposed to credit risk and may use credit default swaps (CDS) for hedging purposes. Regulation is found to induce...
Persistent link: https://www.econbiz.de/10010291748
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Banks' regulatory buffers, liquidity networks and monetary policy transmission
Merkl, Christian; Stolz, Stéphanie - 2006
Based on a quarterly regulatory dataset for German banks from 1999 to 2004, this paper analyzes the effects of banks’ regulatory capital on the transmission of monetary policy in a system of liquidity networks. The dynamic panel regression results provide evidence in favor of the bank capital...
Persistent link: https://www.econbiz.de/10010295189