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In the expansionary phase of the economy (1995-2007) and, particularly after the Euro introduction, credit to the business sector increased significantly in Europe. According to surveys of the EC-Flash Eurobarometer (2005), over 77% of SMEs claimed to have appropriate funding levels. A number of...
Persistent link: https://www.econbiz.de/10011490628
, thus suggesting a weak signalling role of PE towards banks. …
Persistent link: https://www.econbiz.de/10011504387
compares the effects of competition and collaboration between banks and fintechs on stability and efficiency. Using a partial …-Miera and Repullo (2017), this paper shows that cooperation between banks and fintechs increases stability and efficiency …
Persistent link: https://www.econbiz.de/10012419125
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 business of the banking sector makes it necessary for a...
Persistent link: https://www.econbiz.de/10012228040
to analyze eleven sanctions episodes between 2002 and 2015, we find that banks located in Germany reduce their positions … adjust its positions after the imposition of sanctions. For affiliated banks located in countries with low financial …
Persistent link: https://www.econbiz.de/10012230708
We examine insurance against loan default when lenders can screen in primary markets at a heterogeneous cost and learn loan quality over time. In equilibrium, low-cost lenders screen loans but some high-cost lenders insure them. Insured loans are risk-free and liquid in a secondary market, while...
Persistent link: https://www.econbiz.de/10012287496
When banks are faced with a funding shortage in money market wholesale funding, they partly substitute by tapping other … implications, which go beyond the balance sheets of banks affected by the funding shortage. Banks which are forced to seek … alternative funding sources ("affected" banks) crowd out other initially unaffected banks, which pay substantially more to retain …
Persistent link: https://www.econbiz.de/10012289308
We isolate the direct bank-to-sovereign distress channel within the Eurozone’s sovereignbank-loop by exploiting the global, non-Eurozone related variation in stock prices. We instrument banking sector stock returns in the Eurozone with exposure-weighted stock market returns from non-Eurozone...
Persistent link: https://www.econbiz.de/10012265559
We study the macroeconomic effects of bank capital requirements in an economy with two banking sectors. Banks are …
Persistent link: https://www.econbiz.de/10012265800
, complementary channel: bank risk taking. We model the portfolio choice of banks under moral hazard and thereby highlight the …
Persistent link: https://www.econbiz.de/10012267570