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Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels in the wake of the global financial crisis (GFC)...
Persistent link: https://www.econbiz.de/10011545309
The euro area crisis is often linked to the emergence of current account imbalances. As most of the deficit countries experienced pronounced credit booms at the same time that these imbalances were building up, this paper investigates the link between domestic credit developments and the current...
Persistent link: https://www.econbiz.de/10011561798
pure non-bank lending, a reasonable mix of bank- and market-based financing should be considered. Banks are said to have a …
Persistent link: https://www.econbiz.de/10011586363
banks follow their customers abroad. Finally, the effect of the recent financial crisis is discussed. It finds that …
Persistent link: https://www.econbiz.de/10011586713
making the assumption that balance-sheet resource allocation is indicative of the strategic focus of banks, we also find …
Persistent link: https://www.econbiz.de/10011604444
), well-functioning institutions are a key driving force for international bank flows. Specifically, foreign banks invest …
Persistent link: https://www.econbiz.de/10011604483
We describe a dynamic model of financial intermediation in which fundamental characteristics of the economy imply a unique equilibrium path of bank and financial market lending. Yet we also show that economies whose fundamental characteristics have converged may continue to have very different...
Persistent link: https://www.econbiz.de/10011604488
monetary policy was up (down). Overall, we find that competition among banks and competition from financial markets result in a …
Persistent link: https://www.econbiz.de/10011604760
This paper analyses the impact of loan market competition on the interest rates applied by euro area banks to loans and … bank interest rates, we likewise find that banks tend to price their loans more in accordance with the market in countries … heavier in the loan market than in the deposit markets, so that banks compensate for their reduction in loan market income by …
Persistent link: https://www.econbiz.de/10011604931
We study the prices that individual banks pay for liquidity (captured by borrowing rates in repos with the central bank … depend in particular on the distribution of liquidity across banks, which is calculated over time using individual banklevel … data on reserve requirements and actual holdings. Banks pay more for liquidity when positions are more imbalanced across …
Persistent link: https://www.econbiz.de/10011605422