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recourse to central bank finance is rather limited and does not affect the risk-taking behaviour of banks in a non … capitalised banks, a kind of "hidden moral suasion" or "home-biased" gambling for resurrection to actively push the sovereign-bank …
Persistent link: https://www.econbiz.de/10012268051
We demonstrate that the co-existence of different motives for liquidity preferences profoundly affects the efficiency of financial intermediation. Liquidity preferences arise because consumers wish to take precautions against sudden and unforeseen expenditure needs, and because investors want to...
Persistent link: https://www.econbiz.de/10013328813
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 portfolio choice of banks under moral hazard and thereby highlight the … deposits, the after-tax returns on different portfolios, and future bank profits. The analysis yields two novel findings: A tax …
Persistent link: https://www.econbiz.de/10012267570
We isolate the direct bank-to-sovereign distress channel within the Eurozone’s sovereignbank-loop by exploiting the …-related variation. We find that the transmission of instrumented bank distress, while economically relevant, is significantly smaller … variables in previous studies. Furthermore, we show that the spillover of bank distress is significantly stronger for countries …
Persistent link: https://www.econbiz.de/10012265559
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/10012317329
to both liquidity and interest rate risks. Additionally, we discuss the share of demand and term deposits on bank funding …
Persistent link: https://www.econbiz.de/10012233800
paper provides an overview of the existing research regarding bank reputation in the Republic of Croatia. As corporate … the internal and external dimensions of their CSR and their relation to a bank’s reputation. …
Persistent link: https://www.econbiz.de/10012221859
Using a unique dataset, which combines bank organizational variables, information on lending techniques, firms' credit … crisis period. Our main findings suggest that the variables shaping the organization of a bank in its lending activity to non …
Persistent link: https://www.econbiz.de/10011544613
commercial banks, as well as the crisis itself. We rely on the data of the Bank of Estonia. Unfortunately, only consolidated data …
Persistent link: https://www.econbiz.de/10011477034
During the last years, gravity equations have leapt from the trade literature over into the literature on financial markets. Martin and Rey (2004) were the first to provide a theoretical model for cross-border asset trade, yielding a structural gravity equation that could be tested empirically....
Persistent link: https://www.econbiz.de/10011536009