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analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail …-out expectations lead to steeper bonus schemes and even more risk-taking. If there is an effort problem, the compensation scheme … perceptions makes it optimal for a welfare-maximizing regulator to impose caps on bank bonuses. In contrast, raising managers …
Persistent link: https://www.econbiz.de/10009702894
analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail …-out expectations lead to steeper bonus schemes and even more risk-taking. If there is an effort problem, the compensation scheme … perceptions makes it optimal for a welfare-maximizing regulator to impose caps on bank bonuses. In contrast, raising managers …
Persistent link: https://www.econbiz.de/10013085986
This paper proposes a standardised classification of business models of the European Union (EU) banks. Our work is based on a rich and unique dataset collected for the first time for the full population of EU banks at individual level. The proposed approach to classification combines both a...
Persistent link: https://www.econbiz.de/10012054483
. -- Financial institutions ; Financial stability ; Financial system regulation and policies …
Persistent link: https://www.econbiz.de/10003933254
overall impact of the program. -- Financial crisis ; banking ; derivative pricing ; convertible preferred ; risk management …
Persistent link: https://www.econbiz.de/10003948201
This paper studies liability management exercises (LME) by banks, which have comparable regulatory capital effects than contingent capital triggers. LMEs are concentrated on low capitalization situations, both in the cross-section and in the time series and are frequently associated with equity...
Persistent link: https://www.econbiz.de/10010391944
Banks face a 'behavioralization' of their balance sheets since deposit funding increasingly consists of non-maturing deposits with uncertain cash flows exposing banks to asset liability (ALM) risk. Thus, this study examines the behavior of banks' retail customers regarding non-maturing deposits....
Persistent link: https://www.econbiz.de/10013066658
The Capital Assistance Program (CAP) was created by the U.S. government in February 2009 to provide backup capital to large financial institutions unable to raise sufficient capital from private investors. Under the terms of the CAP, a participating bank receives contingent capital by issuing...
Persistent link: https://www.econbiz.de/10013070444
of the European banking system. The findings indicate that advancements in financial inclusion through more account … ownership and digital payments have a stabilizing effect on the banking industry. A deeper investigation shows that such a …
Persistent link: https://www.econbiz.de/10012833047
We present a model in which shadow banking arises endogenously and undermines market discipline on traditional banks …. Demandable deposits impose market discipline: Without shadow banking, traditional banks optimally pursue a safe portfolio … strategy to prevent early withdrawals. Shadow banking constitutes an alternative banking strategy that combines high risk …
Persistent link: https://www.econbiz.de/10012900681