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Persistent link: https://www.econbiz.de/10013359271
The interest collected by the main borrowers is collected to pay back the principal borrowed from the depositary bank …
Persistent link: https://www.econbiz.de/10012288760
concerns usually inhering research on real economic implications of bank regulation. We find a comparably stronger …, and regulators around bank insolvency may corrupt banks' credit allocation and monitoring decisions, leading to suboptimal … significant effect on individual firm growth - particularly for firms that are structurally more dependent on bank financing. Our …
Persistent link: https://www.econbiz.de/10010329452
Why do some banks react to deregulation by expanding geographically while others do not? This paper examines this question using exogenous variation in locally non-diversifiable risk that banks face in their home state. As a measure of locally non-diversifiable risk we use data on damages...
Persistent link: https://www.econbiz.de/10011528012
I investigate how banks manage liquidity as specified in the German prudential liquidity regulation, which combines a …
Persistent link: https://www.econbiz.de/10010270256
-Bond convert into equity once the equity ratio falls below a certain threshold and CoSu-Bond holders take over the bank while …
Persistent link: https://www.econbiz.de/10010305972
regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were … risk averse in an environment where there is no interbank market and liquidity regulation. Introducing a buoyant interbank …
Persistent link: https://www.econbiz.de/10010329244
results show that rank correlations are particularly sensitive towards a bank’s leverage and towards tightening economic …
Persistent link: https://www.econbiz.de/10011892128
scheme of bank executives. We show that the implementation of capital requirements, which are contingent on compensation …
Persistent link: https://www.econbiz.de/10010310121
In this paper we develop a methodology to test for changes in the strength of market discipline in the corporate bond market. Based on the relationship between equities and bonds of a firm, our method examines the relationship between equity implied information about default probabilities and...
Persistent link: https://www.econbiz.de/10010270071