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Bank regulators interfere with the efficient allocation of resources for the sake of financial stability. Based on this …
Persistent link: https://www.econbiz.de/10013198370
further split the samples of countries on the basis of the median levels of lending and the deposit rate spread, foreign bank …
Persistent link: https://www.econbiz.de/10011527140
This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks compete on both deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate three questions: what are the effects of...
Persistent link: https://www.econbiz.de/10013152326
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
This paper addresses the desirability of competition in banking industry. In a model where banks compete on both deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate three questions: what are the effects of competition on...
Persistent link: https://www.econbiz.de/10014191429
We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with …
Persistent link: https://www.econbiz.de/10010366524
markets and in areas that have fewer bank branches per capita. We also find that the portion of LendingClub loans increases in …
Persistent link: https://www.econbiz.de/10011891828
inference and indicates that bank capital regulation which ensures banks to contribute to sustainable economic growth should … stability and capital market competition for equity capital, this paper proposes that sustainable bank capital regulation should … be in line with and be adjustable to significant changes in bank business model and the broad economy so that banks will …
Persistent link: https://www.econbiz.de/10013036548
How do near-zero deposit rates affect (optimal) bank capital regulation and risk taking? I study these questions in a … requirements vary with the level of interest rates if the ZLB binds occasionally. Subsidizing bank funding costs at the ZLB dampens …
Persistent link: https://www.econbiz.de/10012053724
How do near-zero interest rates affect bank competition, risk taking and regulation? I study these questions in a … insurance may induce excessive risk taking. The zero lower bound on deposit rates (ZLB) distorts bank competition and boosts …
Persistent link: https://www.econbiz.de/10011801359