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This paper studies the extent to which monetary policy may affect banks' perception of credit risk and the way banks measure risk under the internal ratings-based approach. Specifically, we analyze the effect of different monetary policy indicators on banks' risk weights for credit risk. We...
Persistent link: https://www.econbiz.de/10011786136
encourage banking institutions to supply credit to the economy. Increased bank supply of credit is a good thing but too much of … thing and how bank managers react to this. After examining 82 bank samples, I find that (i) bank underestimate the level of …) non-performing loans, bank portfolio risk and loan portfolio size are significant determinants of the level of loan loss …
Persistent link: https://www.econbiz.de/10012971951
We use unique data on banks' private risk assessments of corporate borrowers to quantify how competition among banks affect the risk sensitivity of interest rates in the Norwegian credit market. We show that an increase in competition makes corporate lending rates less sensitive to banks' own...
Persistent link: https://www.econbiz.de/10012795608
develops a methodology to detect problems at the individual bank level in an effort to identify those firms with financial … facilitate bank monitoring tasks, as well as some disaggregated subcomponents that are intended to display the relative …
Persistent link: https://www.econbiz.de/10011283443
Basel framework for bank's capital adequacy has been criticized for its over reliance on external credit rating … bank from a more holistic point of view. Here, we attain all the above issues and provide a comprehensive framework … regarding bank's capital adequacy and liquidity requirements which is claimed to settle all the aforementioned issues and …
Persistent link: https://www.econbiz.de/10012891898
in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …
Persistent link: https://www.econbiz.de/10012822724
sovereign risk affects banking risk (and vice versa), presents some new evidence on bank-sovereign links, and discusses policy …
Persistent link: https://www.econbiz.de/10013055983
expectations for NPLs are found to be effective in reducing banks' NPLs. The phase-in of the policies can temporarily reduce bank …
Persistent link: https://www.econbiz.de/10013286744
Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...
Persistent link: https://www.econbiz.de/10012643066
in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …
Persistent link: https://www.econbiz.de/10012286943