Narrow search
Showing 1 - 10 of 379
Cover Image
Bank leverage, welfare, and regulation
Admati, Anat R.; Hellwig, Martin - 2018
because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …
Persistent link: https://www.econbiz.de/10011925841
Cover Image
Bank leverage, welfare, and regulation
Admati, Anat R.; Hellwig, Martin - 2018 - Revised January 14, 2019
it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …
Persistent link: https://www.econbiz.de/10011977827
Cover Image
Increased-Liability Equity : A Proposal to Improve Capital Regulation of Large Financial Institutions
Admati, Anat R. - 2010
the cost of credit. Public subsidies of debt financing through tax shields and implicit guarantees may make equity … “expensive” but do not make sense given the negative externalities associated with leverage. Some have suggested that debt serves …While it is recognized that the high degree of leverage used by financial institutions creates systemic risks and other …
Persistent link: https://www.econbiz.de/10013149380
Cover Image
Overinvestment, leverage and financial system liquidity : a challenging approach
López-de-Foronda, Óscar; López-de-Silanes, Florencio; … - In: Business research quarterly : BRQ 22 (2019) 2, pp. 96-104
The aim of this paper is to analyse the influence of financial system liquidity and corporate leverage on a firm …'s overinvestment. We posit that when external funds are easily available, as in expansionary monetary periods, debt loses its … traditional role as a managerial control mechanism. Instead, the supply of systemic liquidity results in corporate leverage …
Persistent link: https://www.econbiz.de/10012015933
Cover Image
Connected Lending of Last Resort
Mitchener, Kris James; Monnet, Eric - 2023
Because of secrecy, little is known about the political economy of central bank lending. Utilizing a novel, hand-collected historical daily dataset on loans to commercial banks, we analyze how personal connections matter for lending of last resort, highlighting the importance of governance for...
Persistent link: https://www.econbiz.de/10014290136
Cover Image
Liquidity Risk and Solvency II
Gaspar, Raquel M. - 2010
In this paper we discuss the importance of liquidity risk when evaluating the risk of portfolios of financial assets that insurance companies hold. Until very recently and within the scope of Solvency II, liquidity risk was only considered under Pillar II, i.e. the proposal was that insurance...
Persistent link: https://www.econbiz.de/10013135255
Cover Image
Do Loan Loss Reserves Behave like Capital? Evidence from Recent Bank Failures
Ng, Jeffrey - 2014
Regulatory capital guidelines allow for loan loss reserves to be added back as capital. The evidence in this paper suggests that the influence of loan loss reserves added back as regulatory capital (hereafter referred to as “add-backs”) on bank risk cannot be explained by either economic...
Persistent link: https://www.econbiz.de/10013069516
Cover Image
Stress Testing for Commercial, Investment and Custody Banks
Cope, Daniel Patrick - 2020
In this chapter we describe stress testing at banks covering the major products and businesses in which banks engage. This includes commercial and retail lending, capital markets (investment banking, sales and trading), and trust and custody. We cover loss and net income modeling and thus...
Persistent link: https://www.econbiz.de/10012842534
Cover Image
Bank Runs and the Repo Market
Schilling, Linda - 2018
. On the other hand, entering in a repo increases the future debt burden of the bank. We show, if the competitive repo …
Persistent link: https://www.econbiz.de/10012936019
Cover Image
Competition and Bank Liquidity Creation
Jiang, Liangliang - 2017
Although liquidity creation is a key banking function, little is known about its determinants. We use a new identification strategy to assess whether an intensification of competition among banks increases or decreases liquidity creation. Consistent with the predictions of some theoretical...
Persistent link: https://www.econbiz.de/10012969567