Showing 51 - 60 of 101,334
How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …
Persistent link: https://www.econbiz.de/10012108717
The cost of bank funding on money markets is typically the sum of a risk-free rate and a spread that reflects rollover … usefully complements its spot equivalent, the IBOR-OIS spread, in the monitoring of bank funding risk in real time. First, it … power for economic growth and bank lending in the United States and the euro area than the spot IBOR-OIS, credit default …
Persistent link: https://www.econbiz.de/10012219137
This paper argues that banks must be sufficiently levered to have first-best incentives to make new risky loans. This result, which is at odds with the notion that leverage invariably leads to excessive risk taking, derives from two key premises that focus squarely on the role of banks as...
Persistent link: https://www.econbiz.de/10010385486
We examine the association of the business cycle and revenue diversification with the banks' capital buffer and credit risk for a sample of banks from the Association of Southeast Asian Nations (ASEAN) region from 1998 to 2018, using 2,847 banking firm–year observations. We find that ASEAN...
Persistent link: https://www.econbiz.de/10012840709
The author's study analyzes, loan valuation methods using discrete time model of contingent claims analysis. In the empirical test, the undiversifiable risk was measured by the correlation coefficient of one borrower with the average return of all borrowers. The results of the test supported the...
Persistent link: https://www.econbiz.de/10012920146
decline in loan maturity is bank driven. In line with this premise, we find that the slope of the loan yield curve becomes …
Persistent link: https://www.econbiz.de/10013006666
into account the different types of bank ownership (state, private, and foreign-owned) and foreign banks' mode of entry …. In addition, when different types of bank ownership and foreign banks' mode of entry taken into account, we find that … foreign-owned banks. However, no evidence of mode of foreign bank entry on the return. Furthermore, this study indicates the …
Persistent link: https://www.econbiz.de/10012988917
Keeping in view that the roles of portfolio risk and the relationship between different risky lending assets in loan valuation have not been studied empirically, this study examines the relationship between undiversiable portfolio risk and portfolio lending with an attempt to fill the gap...
Persistent link: https://www.econbiz.de/10012993888
This paper outlines a framework based on microdata and a structural model to gauge credit risk in banks' exposures to non-financial firms. Sectoral risk factors are accounted for using a multi-factor model. We use expected and unexpected losses as indicators of credit risk stemming from the...
Persistent link: https://www.econbiz.de/10012946809
This article investigates the relationship between discretionary loan loss provisions and bank intangibles among … associated with bank intangible assets and change in intangible assets, but the inverse association is weakened in environments …
Persistent link: https://www.econbiz.de/10012900164