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, we show that a trade-off exists for regulators between banks' performance and stability in Italy. Two key findings … provide evidence for the nontriviality of the return-risk nexus: (i) banks' liquidations are concentrated at the lower-end of …
Persistent link: https://www.econbiz.de/10015410059
growth in the Swedish non-bank sector is driven by regulatory arbitrage from banks. Instead, we find that the main drivers …
Persistent link: https://www.econbiz.de/10015324111
This paper studies how financial intermediation varies across banks. Bank size is a first-order determinant of banks …' capital structure in the cross-section. Largest banks have the lowest capital-to-asset ratio and the lowest ratio of Tier-1 … capital against risk-weighted assets. These large banks earn a larger interest income per dollar invested in their loan …
Persistent link: https://www.econbiz.de/10012849874
significantly increases systemic risk. In particular, herding in real estate loans by big banks contribute more to systemic risk. We …
Persistent link: https://www.econbiz.de/10012889250
This article investigates the impact of central clearing in credit risk transfer markets on a loan-originating bank's lending behavior. Access to central clearing changes the bank's optimal loan risk hedging strategy so as to undermine lending discipline. The effect on lending discipline depends...
Persistent link: https://www.econbiz.de/10013006981
13 large banks accounting for 75% of total UK lending. We document a substantial change in the coefficient of the Tier 1 …
Persistent link: https://www.econbiz.de/10013008382
Chinese banks have sought ways to rapidly expand lending in light of strict regulatory mandates to reduce official … collateralize repurchases remain a channel for banks to increase their balance sheet and reduce official lending. Many banks even … classify repurchase lending underneath the heading of lending to banks. As back door lending funds roll-overs and commodity …
Persistent link: https://www.econbiz.de/10013033802
This paper adds to the growing body of literature on the design of Contingent Convertible Bonds (CoCos). We discuss how the design of the loss absorption mechanism affects the stability of bank funding and distinguish between Conversion-to-Equity (CE) CoCos, Principal WriteDown (PWD) CoCos with...
Persistent link: https://www.econbiz.de/10012988718
banks (CSBs) had on the quality of their borrowers' financial statements. Using a difference-in-difference research design …-on-assets (ROA) after a bank's IPO. We also find that pursuant to the IPOs by their lending banks, various measures of borrowers' FRQ …
Persistent link: https://www.econbiz.de/10012936432
We present an empirical study of stress testing for portfolios of auto loans. We find that loans aged five years or more have significantly higher default probabilities. This finding raises concerns about the increasing maturity of auto loans in recent years. A challenge in stress testing is the...
Persistent link: https://www.econbiz.de/10012937351