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Using data from Bangladesh, this paper finds that the liquidity premium—the difference between the interest paid on illiquid and liquid savings accounts—is higher in commercial banks than in microfinance institutions. One possible interpretation lies in the higher prevalence of...
Persistent link: https://www.econbiz.de/10012919897
Using data from Bangladesh, this article finds that the liquidity premium – the difference between the interest paid on illiquid and liquid savings accounts – is higher in commercial banks than in microfinance institutions. One possible interpretation lies in the higher prevalence of...
Persistent link: https://www.econbiz.de/10013005625
Asset recovery rate is a key factor for credit investors. This study explores the determinants of bank asset recovery rates during the recent downturn in the real estate sector and subsequent financial crisis. We find that banks relying on brokered deposit realize lower asset recovery rates....
Persistent link: https://www.econbiz.de/10012954883
Combining deposit taking with credit line provision saves on the liquidity costs banks incur to meet the liquidity needs of consumers and corporations, but it exposes them to a risk of concurrent runs on their assets and liabilities. If a bank's financial condition deteriorates, depositors have...
Persistent link: https://www.econbiz.de/10013096656
The article examines the impact of endogenous deposits created by loans on the liquidity of a commercial bank. A developed discrete dynamic model of liquidity is based in particular on the application of a non-traditional indicator of turnover of liquid assets, namely, the ratio of debit...
Persistent link: https://www.econbiz.de/10014258468
Persistent link: https://www.econbiz.de/10013552480
Persistent link: https://www.econbiz.de/10012618370
Since the global financial crisis and the related restructuring of banking systems, bank concentration is on the rise in many countries. Consequently, bank size and its role for macroeconomic volatility (or: stability) is the subject of intense debate. This paper analyzes the effects of...
Persistent link: https://www.econbiz.de/10012102660
How much deposits and equity a bank has influences how a banks’ lending responds to monetary policy. While the responsiveness for the bank lending channel has been well established, this is not the case for the risk-taking channel (RTC). We show in a value-at-risk RTC model that the lending...
Persistent link: https://www.econbiz.de/10013390943
We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits that seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data on bank- firm relationships and branch balance sheets....
Persistent link: https://www.econbiz.de/10014239010