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Schumpeterian Banks: Credit Reallocation and Capital Requirements
Kogler, Michael; Keuschnigg, Christian - 2017
Capital reallocation from unprofitable to profitable firms is a key source of productivity gain in an innovative economy. We present a model of credit reallocation and focus on the role of banks: Weakly capitalized banks hesitate to write off non-performing loans to avoid a violation of...
Persistent link: https://www.econbiz.de/10011712742
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The Necessity for Regulating the Insurance Market Considering the Implementation of the IDD
Petsch, Victoria - 2019
In 2018, the Insurance Distribution Directive (IDD) was fully implemented by all EU member states. It intends to … harmonize the insurance market, provide the right incentives for the agents and protect the consumers. But why? The core … the latest changes in the insurance business require these limitations and monitoring. This paper offers a literature …
Persistent link: https://www.econbiz.de/10012141488
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Why Do People Buy Insurance? A Modern Answer to an Old Question
Fels, Markus - 2021
I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility … and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk … transfer, but meeting a conditional need. In this way, insurance aligns the risk in one's ftnancial endowment with the risk in …
Persistent link: https://www.econbiz.de/10012623164
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Profit Taxation and Bank Risk Taking
Kogler, Michael - 2019
How can tax policy improve financial stability? Recent studies point to large potential stability gains from a reform that eliminates the debt bias in corporate taxation. Such a reform reduces bank leverage. This paper emphasizes a novel, complementary channel: bank risk taking. We model the...
Persistent link: https://www.econbiz.de/10012099095
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Can Fintechs Stabilize the Financial Sector?
Windl, Martin - 2020
The growing popularity of fintechs has led the Financial Stability Board (FSB) to publish considerations about the effects of this emerging industry on stability and efficiency in the financial sector. Against this background, this paper compares the effects of competition and collaboration...
Persistent link: https://www.econbiz.de/10012287910
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Quality of Institutions, Credit Markets and Bankruptcy
Hainz, Christa - 2005
The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank-firm relationship and show that the bank?s decision to liquidate bad firms has two opposing effects. First, the bank receives a payoff if a firm is liquidated. Second, it loses the...
Persistent link: https://www.econbiz.de/10010295971
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Modelling Rating Transitions
Weißbach, Rafael; Mollenhauer, Thomas - 2011
The time-continuous discrete-state Markov process is a model for rating transitions. One parameter, namely the intensity to migrate to an adjacent rating state, implies an ordinal rating to have an intuitive metric. State-specific intensities generalize the state-stationarity. Observing Markov...
Persistent link: https://www.econbiz.de/10010305933
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Market Timing, Maturity Mismatch, and Risk Management: Evidence from the Banking Industry
Ruprecht, Benedikt; Entrop, Oliver; Kick, Thomas; … - 2013
We investigate financial intermediaries interest rate risk management as the simultaneous decision of on-balance-sheet exposure and interest rate swap use. Our findings show that both decisions are substitute risk management strategies. Hausman exogeneity tests indicate that both decisions are...
Persistent link: https://www.econbiz.de/10010329270
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Financing Costs and the Efficiency of Public-Private Partnerships
Avdiu, Besart; Weichenrieder, Alfons - 2018
The paper compares provision of public infrastructure via public-private partnerships (PPPs) with provision under government management. Due to soft budget constraints of government management, PPPs exert more effort and therefore have a cost advantage. At the same time, hard budget constraints...
Persistent link: https://www.econbiz.de/10011892026
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Prediction of Insolvency of Hungarian Micro Enterprises
Boda, Daniel; Luptak, Martin; Pitlik, Laszlo; Szucs, Gabor - 2016
The aim of the study is to establish insolvency forecast model with the usage of different statistical methods and compare their efficiency. Besides this the relation and direction between indebtedness and financial distress is also part of the examination. With different approaches we nearly...
Persistent link: https://www.econbiz.de/10011920352