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This paper argues that first passage time models are likely to better than affine hazard rate models in modelling stressed credit markets and confirms their superior performance in explaining the behavior of Credit Default Swap rates for the major US banking groups over the period of the...
Persistent link: https://www.econbiz.de/10012954808
Persistent link: https://www.econbiz.de/10013093108
Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global … the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to …
Persistent link: https://www.econbiz.de/10013369129
An important question in banking is how strict supervision affects bank lending and in turn local business activity … supervision, bank lending and business activity. We first show that the OTS replacement indeed resulted in stricter supervision of … overcome frictions in bank management, leading to more lending and a reallocation of loans. Consistent with the latter, we find …
Persistent link: https://www.econbiz.de/10011932392
An important question in banking is how strict supervision affects bank lending and in turn local business activity … the thrift regulator (OTS) to analyze economic links between strict supervision, bank lending and business activity. We … capital but can also correct deficiencies in bank management and lending practices, leading to more lending and a reallocation …
Persistent link: https://www.econbiz.de/10012668203
We put our hypothesis very straightforward, considering the euro area and the whole European Economic and Monetary Union (EMU) banking sector. The paper's central hypothesis that capital adequacy of the EMU banking sector influenced credit growth and activities in the nonfinancial sector was...
Persistent link: https://www.econbiz.de/10014316648
more lax lending policies than banks, we unveil important evidence that nonbanks increased bank borrowing following the …
Persistent link: https://www.econbiz.de/10011657569
economic policy decisions. We consider optimizing the amount and structure of a bailout in a borrower-lender network: Given a …
Persistent link: https://www.econbiz.de/10013100565
reveal that government support reduced banks’ provisioning expenses, particularly in the US, even after controlling for bank …
Persistent link: https://www.econbiz.de/10013305602
The Mexican banking crisis of 1994/95 necessitated a major government rescue operation - estimated to have cost about 20 per cent of GDP. Since then, financial sector reforms have been implemented and the performance of the Mexican financial system has markedly improved, as shown by indicators...
Persistent link: https://www.econbiz.de/10012446004