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This paper addresses the topic regarding the desirability of competition in banking industry. In a model where banks compete on both deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate three questions: what are the effects of...
Persistent link: https://www.econbiz.de/10013152326
private bank deposits are a quasi-merit good. Bank stakeholders, as the true beneficiaries of uninterrupted supply of … household savings, seek to exploit the public desire for bank stability. They join with other social and political groups to …
Persistent link: https://www.econbiz.de/10013244313
We study how deposit competition affects a bank’s decision to securitize mortgages. Exploiting the state …
Persistent link: https://www.econbiz.de/10014546248
This paper addresses the desirability of competition in banking industry. In a model where banks compete on both deposit and loan markets and where banks can use monitoring technology to control entrepreneurs' behavior, we investigate three questions: what are the effects of competition on...
Persistent link: https://www.econbiz.de/10014191429
We provide novel evidence that deposit competition incentivizes banks to securitize loans. Exploiting the state-specific removal of deposit market caps across the U.S. as an exogenous source of competition, we document a 7.1 percentage point increase in the probability that banks securitize...
Persistent link: https://www.econbiz.de/10014235750
This paper aims to examine the effect of conventional bank interest rates (CBIR), profit-sharing rates (PS), the level …). The sample comes from eight Islamic public banks registered in the Financial Services Authority (OJK) and Bank Indonesia … significance of tribal-level influence on conventional bank interest, profit-sharing growth rate, liquidity level and inflation …
Persistent link: https://www.econbiz.de/10012845584
The paper revisits the impact of uncertainty on the decision problem of a bank. The bank extends risky loans to private … is endogenized through an information system that conveys public signals about the return distribution of bank loans … raises expected bank profits, but may lead to a higher or lower expected loan volume. Moreover, higher transparency may …
Persistent link: https://www.econbiz.de/10009425842
In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce...
Persistent link: https://www.econbiz.de/10013064301
It is shown that a program of attracting the banking term deposits essentially depends on the term structure of new deposits. Solving the linear integral Volterra equations with difference kernel, it was received the explicit analytical solution for the program of attracting new deposits with an...
Persistent link: https://www.econbiz.de/10013015861
We describe a model in which bank deposits yield liquidity services and therefore earn a lower rate of return than …
Persistent link: https://www.econbiz.de/10012959428