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We provide evidence on the effect of the slope of the yield curve on economic activity through bank lending. Using … rates) boosts bank profits and the supply of bank loans. Intuitively, a higher term premium represents greater expected … profits on maturity transformation, which is at the core of banks' business model, and therefore incentivizes bank lending …
Persistent link: https://www.econbiz.de/10014368571
Within bank activities, which is normally defined as the joint exercise of savings collection and credit supply, risk … importance. It is most simply defined as the potential that a bank borrower or counterparty fails to fulfil correctly at maturity …
Persistent link: https://www.econbiz.de/10012321142
case of bank default, and provides it with sufficient funds as precautionary reserves. To identify and classify healthier …
Persistent link: https://www.econbiz.de/10013030366
We present an analysis of VaR forecasts and P&L-series of all 13 German banks that used internal models for regulatory purposes in the year 2001. To this end, we introduce the notion of well-behaved forecast systems. Furthermore, we provide a series of statistical tools to perform our analyses....
Persistent link: https://www.econbiz.de/10009764769
During the last years the lending business has come under considerable competitive pressure and bank managers often … are able to explain the financial performance of bank lending activities. The analysis is based on the CFS-data-set that …
Persistent link: https://www.econbiz.de/10009768846
Our concern in this article is two-fold: first to see whether the determinants of bank distress and failure have been … risk-weighted counterparts as predictors, despite the focus on the later in the Basel framework. This paper examines bank … technique and discrete survival time analysis, to predict bank failures and draw inferences about the stability of contributing …
Persistent link: https://www.econbiz.de/10013089322
The lessons of the financial and macroeconomic crisis of 2007-2008 made the development of a new macroeconomic forecasting model necessary in the MNB. The model represents a small open economy. It is based on the DSGE philosophy but it deviates from it at several points. The new features of the...
Persistent link: https://www.econbiz.de/10011571328
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