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This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...
Persistent link: https://www.econbiz.de/10011374399
This paper examines whether the influence of investor protection on banks' risk is channeled through banking regulation, and vice-versa, using panel data from a sample of 567 European and US banks for the 2004–2015 period. As banking regulatory factors, we consider capital stringency, activity...
Persistent link: https://www.econbiz.de/10012839033
This paper argues that creditors reflect the financial-safety-net aspect of bank lobbying, plausibly considering the … connection between bank lobbying and government bailouts. Using a structural approach, I show that bank lobbying is negatively …
Persistent link: https://www.econbiz.de/10012852488
To be effective, programs of regulatory reform must address the incentive conflicts that intensify financial risk-taking and undermine government insolvency detection and crisis management. Subsidies to risk taking that large institutions extract from the financial safety net encourage managers...
Persistent link: https://www.econbiz.de/10013070578
To be effective, programs of regulatory reform must address the incentive conflicts that intensify financial risk-taking and undermine government insolvency detection and crisis management. Subsidies to risk taking that large institutions extract from the financial safety net encourage managers...
Persistent link: https://www.econbiz.de/10013140025
equilibrium setting, capital requirements and lobbying contributions are determined as the outcome of bargaining between banks and … politicians. We show that bankers and politicians agree on lobbying contributions and capital regulation that renders banks … capital regulation standards from international agreements eliminate lobbying incentives, yielding an efficient and fair …
Persistent link: https://www.econbiz.de/10011962140
We exploit the introduction of free banking laws in US states during the 1837-1863 period to examine the impact of removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic stability in this period, we are able to isolate the...
Persistent link: https://www.econbiz.de/10010227307
We study a politician's choice for state or private control of banks. The choice trades of lobbying contributions …
Persistent link: https://www.econbiz.de/10011380029
One explanation for the poor performance of regulation in the recent financial crisis is that regulators had been captured by the financial sector. We present a micro-founded model with rational agents in which banks may capture regulators due to their high degree of sophistication. Banks can...
Persistent link: https://www.econbiz.de/10010338301
In this chapter, our goal is to discuss whether and how bank lobbying in the United States leads to regulatory capture …. First, we provide an overview of the importance of and motivations behind bank lobbying. Second, we examine the impact of … lobbying on banking regulation and supervision by reviewing recent empirical evidence. Third, we discuss the effect of the …
Persistent link: https://www.econbiz.de/10012926772