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The banking sector is a complex system composed of a large number of stakeholders that interacts in a non-simple way … risk in the banking sector that affect the bank performance, as it exhibits loss probability because of the failure of … total loans, representing the major obstacle to the development and performance of the banking sector in Albania. The …
Persistent link: https://www.econbiz.de/10012101508
In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers faces a trade-off. It wants to avoid rolling over a loan to a bad firm so as to safeguard its reputation as an effective monitor. However, refusing to roll over a loan to a...
Persistent link: https://www.econbiz.de/10013108064
We study the transmission of bank distress to nonfinancial firms from 34 countries during the 2007-2009 financial crisis using systemic and bank-specific shocks. We find that bank distress is associated with equity valuation losses and investment cuts to borrower firms with the strongest lending...
Persistent link: https://www.econbiz.de/10013038497
This paper aims to examine the underlying causes of the sharp reduction in bank lending, which in turn is highlighting some structural weaknesses of Italian firms and financial system. The structure of this paper is as follows. Section 1 introduces the paper. Section 2 analyzes some drivers of...
Persistent link: https://www.econbiz.de/10013053669
portfolio. Our results show that diversified banks maintain higher loan supply during banking crises in borrower countries. The …
Persistent link: https://www.econbiz.de/10011993704
This paper analyzes the determinants of credit to medium-sized enterprises before and during the crisis in Italy. While the bank-enterprise relationship seems to be crucial in the granting of credit before the crisis of 2007, during the crisis the results show a greater virtuosity of firms...
Persistent link: https://www.econbiz.de/10013126896
The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a...
Persistent link: https://www.econbiz.de/10013369129
Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks' provision of liquidity insurance in the form of credit...
Persistent link: https://www.econbiz.de/10014437040
This paper investigates whether, and through which channel, the active use of credit derivatives changes bank behavior in the credit market, and how this channel was affected by the crisis of 2007-2009. Our principal finding is that banks with larger gross positions in credit derivatives charge...
Persistent link: https://www.econbiz.de/10013114993
disintegration of the credit origination value chain in banking. The structure of this paper is as follows. Section 1 introduces the … the lending activity. Section 7 examines the credit reporting market within a relationship and transaction banking …
Persistent link: https://www.econbiz.de/10013000470