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mute on what the optimal bailout program should look like to mitigate the negative consequence of government intervention … the risk effect the most. The optimal bailout package should include mechanisms aimed at strengthening market monitoring …
Persistent link: https://www.econbiz.de/10013084427
A wide range of approaches has been applied to address banking and other financial crises. The nature of the approach depends on the nature of the crisis, its origins, evolution and context. Systemic banking crises are among the most common and costly to address. The experiences of the three...
Persistent link: https://www.econbiz.de/10012826832
implementations of the funds concentration effect and the corresponding discriminatory bailout scheme: “random bailout“ and “bailout …
Persistent link: https://www.econbiz.de/10011400865
Exploiting the Japanese banking crisis as a laboratory, we provide firm-level evidence on the real effects of bank bailouts. Government recapitalizations result in positive abnormal returns for the clients of recapitalized banks. After recapitalizations, banks extend larger loans to their...
Persistent link: https://www.econbiz.de/10008824507
Exploiting the Japanese banking crisis of the 1990s as a laboratory, we investigate the effects of bank bailouts on the supply of credit and the performance of banks' clients. Our findings indicate that the size of capital injections relative to banks' initial financial conditions is crucial for...
Persistent link: https://www.econbiz.de/10013103007
Exploiting the Japanese banking crisis of the 1990s as a laboratory, we investigate the effects of bank bailouts on the supply of credit and on the valuations and the real performance of banks' clients. Consistent with recent theories, our findings indicate that the size of the capital...
Persistent link: https://www.econbiz.de/10013107985
This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … construct a measure of bail-out perceptions by using rating information. From there, we construct the market shares of insured … bank bail-outs on banks' risk-taking behavior. -- Government bail-out ; implicit and explicit government guarantees …
Persistent link: https://www.econbiz.de/10003923903
Forty-eight credit unions received capital injections as part of the financial sector bailout. The predicted … probability of receiving bailout funds jumps from 29 percent to 81 percent for the typical credit union, if the institution …
Persistent link: https://www.econbiz.de/10013114156
Forty-eight credit unions received capital injections as part of the financial sector bailout. The predicted … probability of receiving bailout funds jumps from 29 percent to 81 percent for the typical credit union, if the institution …
Persistent link: https://www.econbiz.de/10013115556
We study the government equity infusions and the incentives of banks to participate in the Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). We show that strong banks opted out of participating in CPP and that equity infusions were provided to banks that posed systemic...
Persistent link: https://www.econbiz.de/10013116839