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The purpose of this paper is to highlight some issues and proffer solutions that can make sustainable finance become sustainable. One, there should be greater focus on how some aspects of finance can contribute to sustainability. Two, light-touch regulation may be needed to grow the relatively...
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We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … and fragility. Deposit insurance and the expectation of government bailouts increase not only bank risk taking, but also …
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unsolicited deposit shocks resulting from unconventional energy development and estimate bank allocations of these deposits. In …
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How do concentration and competition in the European banking sector affect lending relationships between small and medium sized enterprises (SMEs) and their banks? Recent empirical evidence suggests that concentration and competition capture different characteristics of banking systems. Using a...
Persistent link: https://www.econbiz.de/10013152904
U.S. banks obtain most of their funding from a combination of low-interest deposits and high-interest deposits. Using local demographic variations as instruments for banks' liability composition, I show that when monetary policy tightens, banks with a larger proportion of low-interest deposits...
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quantity being borrowed. This new evidence supports the existence of the bank lending channel of monetary policy …
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ability to screen customers, increasing profitability. The spread between the loan rates in the South and North has narrowed …
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