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This paper analyzes the bail-in tool under the Bank Recovery and Resolution Directive (BRRD) and predicts that it will not reach its policy objective. To make this argument, this paper first describes the policy rationale that calls for mandatory private sector involvement (PSI). From this...
Persistent link: https://www.econbiz.de/10011720764
This paper analyses the bail-in tool under the BRRD and predicts that it will not reach its policy objective. To make this argument, this paper first describes the policy rationale that calls for mandatory private sector involvement (PSI). From this analysis the key features for an effective...
Persistent link: https://www.econbiz.de/10011711663
This paper investigates a model of endogenous product differentiation in subprime lending markets. In the subprime literature the discussion surrounds two competing hypotheses about pricing behavior. The opportunity pricing hypothesis suggests that lenders are rent seeking in their pricing...
Persistent link: https://www.econbiz.de/10013141057
We investigate whether or not market discipline on banking firms changed after the Dodd-Frank Wall Street Reform and …
Persistent link: https://www.econbiz.de/10013073502
risk culture in banking institutions. Specifically, it examines the regulatory responses and industry-led initiatives taken …
Persistent link: https://www.econbiz.de/10012894261
for the onset of the crisis and its severity. In particular, lapses in banking regulation contributed significantly to the …-reported data to effectively monitor risk. Banking regulation is the primary safeguard against financial instability, but it should …
Persistent link: https://www.econbiz.de/10013009689
liquidity creation of small and medium-sized banks, but not the largest institutions which control over 80% of the banking …We estimate the volume of liquidity creation by U.S. bank holding companies between 1997 and 2015, and examine the … quantitative easing, and the Troubled Asset Relief Program (TARP). The dynamics of bank liquidity creation differ considerably …
Persistent link: https://www.econbiz.de/10012854526
In the field of risk management, scholars began to bring together the quantitative methodologies with the banking …
Persistent link: https://www.econbiz.de/10013056263
In a model with heterogeneous banks and endogenous fire sales, the tightening of bank capital regulation can aggravate fire sales, leading to larger bank losses and higher systemic risk. When calibrated to the data, the least costly policies to mitigate systemic risk raise both ex ante capital...
Persistent link: https://www.econbiz.de/10012917551
because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy … laissez-faire are inefficient and involve excessive borrowing, with default risks that jeopardize the purported liquidity …
Persistent link: https://www.econbiz.de/10011925841