Showing 1 - 10 of 4,528
The paper tests the effect of competition on bank risk-taking for a sample of up to 800 banks worldwide over the period … 1995-2010. Following the theoretical literature on bank competition and risk more closely than previous empirical research …, we measure competition at the bank level and separate the effects of competition in deposit and loan markets. We also …
Persistent link: https://www.econbiz.de/10013120445
In this paper we revisit the long debate on the risk effects of bank competition and propose a new approach to the … empirical estimation of the relation between deposit market competition and bank risk. Our approach accounts for the opportunity … of banks to shift to wholesale funding when deposit market competition is intense. The analysis is based on a unique …
Persistent link: https://www.econbiz.de/10013144534
In this paper we revisit the long debate on the risk effects of bank competition and propose a new approach to the … empirical estimation of the relation between deposit market competition and bank risk. Our approach accounts for the opportunity … of banks to shift to wholesale funding when deposit market competition is intense. The analysis is based on a unique …
Persistent link: https://www.econbiz.de/10013141377
of these instruments in the competition between banking firms. We use a duopolistic version of the industrial … organization approach to banking to find out that credit derivatives may influence banking competition. For this result to hold …
Persistent link: https://www.econbiz.de/10010263017
Better customer service provisions by banks - such as more branches and ATMs, longer business hours, and more personalized services - help attract more core deposits and increase funding stickiness by raising depositors' switching costs and enhancing their loyalty. Funding stickiness from...
Persistent link: https://www.econbiz.de/10011413245
We show that maturity transformation does not expose banks to interest rate risk---it hedges it. The reason is the deposit franchise, which allows banks to pay deposit rates that are low and insensitive to market interest rates. Hedging the deposit franchise requires banks to earn income that is...
Persistent link: https://www.econbiz.de/10012854509
In this paper we relate a bank's choice between retail and wholesale liabilities to real economic uncertainty and the … resulting volatility of bank loan volumes. We argue that since the volume of retail deposits is slow and costly to adjust to … shocks in the volume of bank assets, banks facing more intense uncertainty and more volatile loan demand tend to employ more …
Persistent link: https://www.econbiz.de/10012988762
instant-access deposits. Exploiting variation in information acquisition for different brands of the same bank, we show that … complementarities. Our results point to a previously undocumented source of self-fulfilling bank fragility …
Persistent link: https://www.econbiz.de/10012830725
In this paper we relate a bank’s choice between retail and wholesale liabilities to real economic uncertainty and the … resulting volatility of bank loan volumes. We argue that since the volume of retail deposits is slow and costly to adjust to … shocks in the volume of bank assets, banks facing more intense uncertainty and more volatile loan demand tend to employ more …
Persistent link: https://www.econbiz.de/10010192750
Asset securitization offers banks the possibility of altering their capital structures and the financial intermediation process. This study shows that the introduction of securitization is associated with fundamental changes in the funding policies of banks. In particular, we present evidence of...
Persistent link: https://www.econbiz.de/10013026259