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The Impact of Expanded Bank Powers on Loan Portfolios Decisions

Torna, Gokhan - 2018

This study takes advantage of a natural experiment to trace out the supply-side effects of nontraditional assets on loan portfolios. The natural experiment centers on the recent accounting standards that require banks to transfer off-balance sheet securitized assets onto balance sheets,...

Persistent link: https://www.econbiz.de/10012937946

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

parameters affect bank credit supply …

Persistent link: https://www.econbiz.de/10013065553

The Surprising Use of Credit Scoring in Small Business Lending by Community Banks and the Attendant Effects on Credit Availability and Risk

Berger, Allen N. - 2014

The literature has documented a positive relationship between the use of credit scoring for small business loans and … small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the … deficiencies in the extant literature by employing data from a new survey on the use of credit scoring in small business lending …

Persistent link: https://www.econbiz.de/10013070995

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

This paper examines consistency in the estimates of probability of default (PD) and loss given default (LGD) that nine large U.S. banks assign to syndicated loans for regulatory capital purposes. Using internal bank data on loans that had PDs and LGDs assigned by more than one bank, we find...

Persistent link: https://www.econbiz.de/10013061902

The impact of capital ratio on lending of EU banks - the role of bank specialization and capitalization

Olszak, Małgorzata; Pipień, Mateusz; Roszkowska, Sylwia - 2015

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between bank loan growth and bank capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative...

Persistent link: https://www.econbiz.de/10012030770

The real estate and credit bubble : evidence from Spain

Akin, Ozlem; García Montalvo, José; García Villar, Jaume - In: SERIEs : Journal of the Spanish Economic Association 5 (2014) 2/3, pp. 223-243

We analyze the determinants of real estate and credit bubbles using a unique borrower-lender matched dataset on … mortgage loans in Spain. The dataset contain real estate credit and price conditions (loan principal and spread, and the … contract) and the lender identity, over the last credit boom and bust. We find that lending standards are softer in the boom …

Persistent link: https://www.econbiz.de/10010422334

Best instruments for market discipline in banking

Caldwell, Greg - 2007

The author develops a dynamic model of banking competition to determine which capital instrument is most effective in disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD) as funding sources. The model, adapted from...

Persistent link: https://www.econbiz.de/10010279868

Are bank shareholders enemies of regulators or a potential source of market discipline?

Park, Sangkyun; Peristiani, Stavros - 2001

In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is, maximize put option value - by pursuing riskier strategies. For safe banks with large charter value, however, the risk-taking incentive is outweighed by the possibility of losing...

Persistent link: https://www.econbiz.de/10010283427

The effect of employee stock options on bank investment choice, borrowing, and capital

Mehran, Hamid; Rosenberg, Joshua - 2007

In this paper, we assess the effects of CEO stock options on three key corporate policies for banks: investment choice, amount of borrowing, and level of capital. Using a sample of 549 bank-years for publicly traded banks from 1992 to 2002, we find that stock option grants lead CEOs to undertake...

Persistent link: https://www.econbiz.de/10010283469

Monitoring, liquidity provision and financial crisis risk

Mundaca, B. Gabriela - 2007

This paper analyzes central bank policies on monitoring banks in distress when liquidity provisions are conditional on performance and a bad shock occurs. A sequential game model is used to analyze two policies: one in which the central bank acts with discretion and the second in which the...

Persistent link: https://www.econbiz.de/10010284376