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The recent global financial crisis has intensified calls to make the financial sector less crisis-prone, and to this end to make impairment recognition rules for debt instruments more forward looking. To better understand the behavior of different impairment rules and their potential effect on...
Persistent link: https://www.econbiz.de/10014162862
This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990 …. The data show similarities across crises during NPL build-ups but less so during NPL resolutions. We find a close … relationship between NPL problems-elevated and unresolved NPLs-and the severity of post-crisis recessions. A machine learning …
Persistent link: https://www.econbiz.de/10012206258
Keeping in view that the roles of portfolio risk and the relationship between different risky lending assets in loan valuation have not been studied empirically, this study examines the relationship between undiversiable portfolio risk and portfolio lending with an attempt to fill the gap...
Persistent link: https://www.econbiz.de/10012993888
This paper looks at the macroeconomic impact of the two policies proposed by ECB Banking Supervision to tackle the high share of non-performing loans (NPLs) on the balance sheets of euro area banks. The first is the coverage expectations for new NPLs set out in the Addendum to the ECB's NPL...
Persistent link: https://www.econbiz.de/10013286744
This paper looks at the impact of mitigation policies implemented by supervisory and macroprudential authorities as well as national governments in the euro area during the coronavirus (COVID-19) pandemic to support lending to the real economy. The impact assessment concerns joint, and...
Persistent link: https://www.econbiz.de/10012520884
This paper analyses macroeconomic and financial determinants of bad loans applying a SVAR approach to investigate whether excessive loans granted during expansionary phases can explain the more than proportional increase in non-performing loans during contractionary periods. The results indicate...
Persistent link: https://www.econbiz.de/10009763782
Persistent link: https://www.econbiz.de/10009782502
freezes, banking crises, credit crunches and, ultimately, severe recessions. The model can potentially generate various types …Banking crises are rare events that break out in the midst of credit intensive booms and bring about particularly deep … and long-lasting recessions. This paper attempts to explain these phenomena within a textbook DSGE model that features a …
Persistent link: https://www.econbiz.de/10013065656
In this paper, we analyze the role bank capital played in systemic banking crises and in lending expansion and … narrative identification of banking crises in Spain. Afterwards, we run a proper econometric test to analyze bank capital levels …
Persistent link: https://www.econbiz.de/10012545573
We study how relationship lending and transaction lending vary over the business cycle. We develop a model in which relationship banks gather information on their borrowers, which allows them to provide loans for profitable firms during a crisis. Due to the services they provide, operating costs...
Persistent link: https://www.econbiz.de/10013079190