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This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks … investigate three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks …' stability? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …
Persistent link: https://www.econbiz.de/10013152326
This paper addresses the desirability of competition in banking industry. In a model where banks compete on both … three questions: what are the effects of competition on banks' monitoring incentives? Does competition hurt banks' stability …? What can be devices to correct potential negative effects of competition vis à vis financial stability? We find that …
Persistent link: https://www.econbiz.de/10014191429
The unconventional monetary policy actions of the Federal Reserve during the recent Global Financial Crisis often involve implicit subsidies to banks. This paper offers a theory of the non-neutrality of money associated with capital injection into banks via nominal transfers, in an environment...
Persistent link: https://www.econbiz.de/10013120443
The unconventional monetary policy actions of the Federal Reserve during the recent financial crisis often involve recapitalization of banks. This paper offers a theory of the non-neutrality of money for policy actions taking the form of injecting capital into banks via nominal transfers, in an...
Persistent link: https://www.econbiz.de/10013120599
Persistent link: https://www.econbiz.de/10012201762
Persistent link: https://www.econbiz.de/10000682892
The German state banks - or Landesbanks - are not only some of the largest banks in Germany but are also a dominant force in the international banking sector. These state-owned banks enjoy special privileges and government support which have made them major players in the global arena of banking...
Persistent link: https://www.econbiz.de/10014473811
Consider a competitive bank whose illiquid asset portfolio is funded by short-term debt that has to be refinanced … of social externalities of bank failures further lowers the optimal level of transparency. Moreover, asset risk taking …
Persistent link: https://www.econbiz.de/10013037132
In this paper, we examine the influence of bank regulation, concentration, and financial and institutional development … on commercial bank margins and profitability across a broad selection of Middle East and North Africa (MENA) countries …. The empirical results suggest that bank-specific characteristics, in particular bank capitalization and credit risk, have …
Persistent link: https://www.econbiz.de/10013250011
European supervisors aggressively requested more capital at large banks. That may cut credit to the economy. We confirm that especially larger banks cut loans while less-significant banks partly offset that credit drop. Moreover, we identify nasty spillovers from that interaction. Specifically,...
Persistent link: https://www.econbiz.de/10012507218