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facilities contributes positively and significantly to stability in the banking sector, leading to greater bank resilience …. As such, this paper examines the linkage between financial inclusion and financial market stability using a dataset of …) approach. Findings in this paper indicate that the higher level of financial inclusion from providing access to banking …
Persistent link: https://www.econbiz.de/10012816411
We use credit-arbitrage asset-backed commercial paper vehicles as a laboratory to empirically examine financial institutions' motivations to take bad-tail systematic risk. By comparing the characteristics of global banks that sponsored credit-arbitrage vehicles prior to the global financial...
Persistent link: https://www.econbiz.de/10012903043
This paper examines the implications that alternative regulatory structures may have for resolving failed banking … features relating to cross-border banking in the form of direct investment that may heighten the problems we consider. We … the case where a cross-border banking organization seeks to take advantage of the liberal cross-border branching …
Persistent link: https://www.econbiz.de/10003730481
. -- Financial institutions ; Financial stability ; Financial system regulation and policies …
Persistent link: https://www.econbiz.de/10003933254
This paper provides further evidence regarding the effect of deposit insurance on the risk-shifting behavior at commercial banks in the United States. In particular, we compare the risk-shifting behavior of commercial banks before and after adopting the risk-based capital requirements in the...
Persistent link: https://www.econbiz.de/10013121658
Contingent convertible capital instruments (CoCos) are hybrid capital securities that absorb losses when the capital of the issuing bank falls below a certain level. In this article, we go over the structure of CoCos, trace the evolution of their issuance, and examine their pricing in primary...
Persistent link: https://www.econbiz.de/10013062903
Persistent link: https://www.econbiz.de/10010189362
The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a firm is liquidated. Second, it loses the rent...
Persistent link: https://www.econbiz.de/10010440454
We examine the effect of competition on banking stability using a new measure of competition based on the reallocation … this measure does capture competition, that competition is stability-enhancing, and that the stability-enhancing effect of … competition contributes to stability and that regulators must condition policy on the health of existing banks …
Persistent link: https://www.econbiz.de/10013064840
for financial stability. Heterogeneity protects from uniform market behaviour. Local banking can better overcome the …The analysis highlights the aspects of diversified market structures and of local, low-distance banking as advantageous … regionally focussed credit institutions. So it seems that the process of re-intermediation and re-directing banking business back …
Persistent link: https://www.econbiz.de/10012153544