Showing 1 - 10 of 3,181
This paper examines the reciprocal lending relationships between financial conglomerates (FCs) in the repo market to better understand the following key points: what motivates powerful firms to engage in this type of contemporaneous cross-funding relationship; and the implications of such...
Persistent link: https://www.econbiz.de/10012849566
This paper examines the potential distortion of prices in the CDS market caused by too-big-to-fail. Overall, we find evidence for market discipline in the CDS market. However, CDS prices are distorted due to a size effect which arises when investors expect a public bail-out as a result of...
Persistent link: https://www.econbiz.de/10003846898
We use a natural experiment and matched bank/firm data to identify the effects of bank guarantees on allocative efficiency. We find that with guarantees in place unproductive firms invest more and maintain higher rates of sales growth. Moreover, firms produce less productively. Firms also...
Persistent link: https://www.econbiz.de/10012935027
Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of financial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees...
Persistent link: https://www.econbiz.de/10013553424
Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees...
Persistent link: https://www.econbiz.de/10014257509
The authors develop a simple general equilibrium framework to study the effects of global competition on banking industry dynamics and welfare. They apply the framework to the Mexican banking industry, which underwent a major structural change in the 1990s as a consequence of both government...
Persistent link: https://www.econbiz.de/10013015121
The 1994 Mexican banking crisis led to wholesale changes in the deposit insurance fund in the country's banking system. Poor lending decisions allowed banks to transfer risk to the fund, resulting in their capturing returns on performing loans, while limiting downside exposure when the fund...
Persistent link: https://www.econbiz.de/10013113793
This paper analyzes the monthly evolution of bank competition in Mexico from 2008 to 2019 using different measures …
Persistent link: https://www.econbiz.de/10012584137
This paper analyzes the monthly evolution of bank competition in Mexico from 2008 to 2019 using different measures …
Persistent link: https://www.econbiz.de/10014236496
opposition in Mexico, unlike the company's failed effort to start a bank in the United States. This was partly because in Mexico … promise, Wal-Mart's entry presents a transnational regulatory dilemma with implications beyond Wal-Mart and Mexico. Because it … headquarters in the United States will remain unregulated at home and beyond Mexico's reach. This home-host hole is inevitable …
Persistent link: https://www.econbiz.de/10014050907