Commercial banks are seen as shareholder value maximising banks, whereas savings banks may have a social or regional agenda and cooperative banks focus on providing value for their customer-owners. Hence, it is generally thought that savings and cooperative banks are less profitable than...

We quantify how banks' funding costs affect their lending behavior directly, and indirectly by feeding back to their net worth. For identification, we exploit banks' heterogeneous liability structure and the existence of regulated deposits in France whose rates are set by the government. Using...

The dramatic consequences of the global crisis forced governments to take into consideration the banking sector reform. The main initiatives are based on the banking regulations strengthening. In this paper we approach another kind of solution to the banking sector problems: a state-owned...

Do homeowner bankruptcy filings work to delay or prevent home foreclosures, and how do they compare to voluntary loan modifications specifically targeted to mortgage relief? The 2007–2012 financial crisis provides a unique opportunity to assess whether bankruptcy can help homeowners avoid the...

This paper attempts to assess whether participation in a microfinance program helps households generate personal savings, as distinct from savings through compulsory contributions to the program. We consider a microfinance program initiated by the Government of India (the SGSY scheme), which is...

The poor can and do save, but often use formal or informal instruments that have high risk, high cost, and limited functionality. This could lead to undersaving compared to a world without market or behavioral frictions. Undersaving can have important welfare consequences: variable consumption,...

In 2008, market disturbances and unexpected price volatility besieged the US financial system. Since then weak balance sheets have heightened risk, thus resulting in an unprecedented rise in non-performing loans and credit-related write-offs in mortgage lending related sectors. This paper...

Recent empirical work has shown that current account deficits have been associated with lower growth in developing countries while they have been associated with higher growth in developed countries. This paper shows that this can be rationalized in an environment where firms face (i)...

For many American households, buying a home is one of the largest sources of debt. We use mortgage data at the individual borrower level joined to their deposit account data to investigate the relationship between income shocks and default for borrowers with different levels of home equity,...

Consideration is the sum paid by an acquirer in exchange for shareholding in an investee and is a product of offer and acceptance principle which reflects the wishes of the buyer and seller. The exact number of shares to be purchased is supposed to be unequivocal and what must be paid should be...