Showing 1 - 10 of 14,015
This paper argues that creditors reflect the financial-safety-net aspect of bank lobbying, plausibly considering the … connection between bank lobbying and government bailouts. Using a structural approach, I show that bank lobbying is negatively … associated with the occurrence of a run-like equilibrium, as is deposit insurance. The estimated effect on bank risk and value is …
Persistent link: https://www.econbiz.de/10012852488
When financial regulators require banks to hold a higher ratio of equity capital to debt funding, banks incur short-term costs as they adjust their balance sheets and lose some of the advantages associated with their existing funding mix. They then seek to maintain post-tax income by, for...
Persistent link: https://www.econbiz.de/10012952903
The world has seen two major financial and economic crises in less than two decades, which have shaken investor confidence in the financial systems, resulted in tens of hundreds of billions of loss, and left behind dislocated societies in many regions. Everything started in the summer months of...
Persistent link: https://www.econbiz.de/10012908771
effective to increase bank resilience to sectoral risks, limiting spillover effects. LTI limits are superior to LTV limits in …
Persistent link: https://www.econbiz.de/10015176875
This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and … equilibrium model with banks and bank capital, in which bank capital solves an asymmetric information problem between banks and …, though banks do not internalize this impact. Regulation, in the form of a constraint on bank leverage, can mitigate the …
Persistent link: https://www.econbiz.de/10009728167
On June 4-5, 2014, SUERF and Baffi Finlawmetrics jointly organised a Colloquium/Conference "Money, Regulation and Growth: Financing New Growth in Europe" at Bocconi University, Milan. The present SUERF Study includes a selection of papers based on the authors’ contributions to the Milan event....
Persistent link: https://www.econbiz.de/10011711957
This paper investigates the real and financial effects of the largest government intervention in US history, the Troubled Asset Relief Program (TARP), on individual firms. Firms borrowing from banks that participate in TARP increase long-term debt and have more cash holdings and working capital...
Persistent link: https://www.econbiz.de/10012855837
We analyze the reaction of stock returns and CDS spreads of banks from Europe and the United States to four major regulatory reforms in the aftermath of the subprime crisis, employing an event study analysis. In contrast to the public perception that nothing has happened, we find that financial...
Persistent link: https://www.econbiz.de/10013081106
bank when its partner bank fails. We investigate how capital constraints affect the choice of the healthy bank to takeover … or liquidate the exposure held jointly with the failing bank, and how the bank's ex ante optimal capital holding and … stock rather than preferred equity injection dilutes existing shareholder interests and gives the bank a greater incentive …
Persistent link: https://www.econbiz.de/10013083309