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Bank regulation used to be riddled with price, product, entry, and location restrictions. These restrictions were intended to prevent the recurrence of crises, such as those of the 1930s and 1940s. Over time, however, regulatory acquiescence to technological and institutional innovation...
Persistent link: https://www.econbiz.de/10012918941
In standard Walrasian macro-finance models, pecuniary externalities such as fire sales lead to overinvestment in illiquid assets or underprovision of liquidity. We investigate whether imperfect competition (Cournot) improves welfare through internalizing the externality and find that this is far...
Persistent link: https://www.econbiz.de/10011806238
We provide a welfare comparison of the two types of banking regulation commonly used to address moral hazard problems, deposit rate ceilings and minimum capital requirements. It is well understood that interference with the price mechanism may lead to inefficiencies -- in the case of a deposit...
Persistent link: https://www.econbiz.de/10013012740
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the competitive environment affect bank monitoring choices and...
Persistent link: https://www.econbiz.de/10010325147
Minimum capital requirement regulation forces banks to refund a substantial amount of their investments with equity. This creates a buffer against losses, but also in- creases the cost of funding. If higher refunding costs translate into higher loan interest rates, then borrowers are likely to...
Persistent link: https://www.econbiz.de/10010486698
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the competitive environment affect bank monitoring choices and...
Persistent link: https://www.econbiz.de/10011348715
Under the Single Supervisory Mechanism (SSM), introduced in 2014, systemically important euro area banks with combined assets of about 21,000 billion euros are directly supervised by the ECB. We examine from a static and a dynamic perspective how this fundamental shift to unified supervision...
Persistent link: https://www.econbiz.de/10014416089
During the past forty years, the simultaneous, symbiotic growth of financial innovation, disintermediation and deregulation has created an environment with extremely complex, opaque investment instruments. That system has now collapsed. At the very center of the crisis are a small group of...
Persistent link: https://www.econbiz.de/10014209183
Der aktuell diskutierte Gesetzentwurf für eine Reform der Einlagensicherung in Weißrusslandverfolgt das Hauptziel, mehr Sparmittel der Bevölkerung für das planwirtschaftliche Wirtschaftssystemverfügbar zu machen. Bei einer nicht passgenau auf die Landessituation abgestimmtenAusgestaltung...
Persistent link: https://www.econbiz.de/10005864141
Operationelle Risiken stellen für Banken nach dem Kreditrisiko die zweitwichtigste Risikokategoriedar. Ein effektives Risikomanagement der operationellen Risiken dürfte in Zukunft einentscheidender Wettbewerbsfaktor sein. Im Rahmen der Neuregelung der bankaufsichtsrechtlichenVorgaben gemäß...
Persistent link: https://www.econbiz.de/10005864351