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We study the stability of the banking system after a mortgage shock when a discretionary bailout policy is applied … the alternatives for most shock/bailout pairs. The medium-sized banks policy performs the worst and may be feasible only … for a small number of low shock/low bailout probability pairs. We identify a threshold level after which the bailout costs …
Persistent link: https://www.econbiz.de/10013072678
This paper examines the ramification of government capital injections into financially distressed banks during the 1997 Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the study aims to examine whether the capital...
Persistent link: https://www.econbiz.de/10014334373
This study examines the effect of government capital injections into financially troubled banks on corporate investment during the Japanese banking crisis of the late 1990s. By helping them to meet the capital requirements imposed by Japanese banking regulation, recapitalization enables banks to...
Persistent link: https://www.econbiz.de/10012870314
This paper develops a formula to numerically estimate the unsubsidized, fair-market value of the toxic assets purchased with Federal Reserve loans. It finds that subsidy rates on these loans were on average 33.9 percent at origination. In contrast, by the 3rd quarter of the 2010, there was on...
Persistent link: https://www.econbiz.de/10013252762
how a bailout fund financed through a tax on bank dividends could resolve bailouts without public money and without …
Persistent link: https://www.econbiz.de/10012900014
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011557140
This paper is the first to assess the Troubled Asset Relief Program (TARP) at loan level by looking at the structure of loan syndicates. While the purpose of TARP was to stimulate the flow of credit during the economic downturn, the low cost of capital could have functioned as a double-edged...
Persistent link: https://www.econbiz.de/10013012954
The economic and financial crisis of the year 2008 highlighted the need for banking sector regulation via the creation of the banking union. The Bank Recovery and Resolution Directive (BRRD) represents an important milestone in the formation of the banking union. It is supposed inter alia to...
Persistent link: https://www.econbiz.de/10012242333
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