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Stylized data shows a structural break in the integration of lending markets which coincides with the global financial crisis. During and after the crisis, banks actively reduced their share of foreign relative to domestic banking activity and lending in particular. This increase in lending...
Persistent link: https://www.econbiz.de/10012099209
scheme of bank executives. We show that the implementation of capital requirements, which are contingent on compensation …
Persistent link: https://www.econbiz.de/10010310121
the resulting drop in bank charter values translated into higher risk-taking at German savings banks. …
Persistent link: https://www.econbiz.de/10010310610
We explore the effect of tax reforms in Italy and Belgium, respectively that decrease the cost of equity on bank …
Persistent link: https://www.econbiz.de/10011712677
We analyze whether, and if so by how much, stable funding would have contributed to the financial soundness of German banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity mismatches in the wake of the financial crisis via the Net...
Persistent link: https://www.econbiz.de/10011712679
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
The positive relationship between bank and sovereign credit risk in the Eurozone is seen as a major threat for the … stability of the Eurozone. This paper explores potential bank-level and country-level drivers of this relationship. We find that … low perceived government effectiveness are positively related to the sovereign-bank nexus. …
Persistent link: https://www.econbiz.de/10011712772
The fragility of financial institutions to panic runs depends on their liquidity base: the short term funds available to banks for investment regardless of the withdrawal option available to customers. Institutions that are able to offer higher yield curves are able to lure the liquidity base...
Persistent link: https://www.econbiz.de/10011712813
-regulated, more fragile nonbanks. The bank-to-nonbank shift largely neutralizes total credit and associated consumption effects for …
Persistent link: https://www.econbiz.de/10012287842
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