Die zukünftige Eigenkapitalunterlegungspflicht gemäss dem Basler Konsultationspapier (kurz als "Basel II" bezeichnet) und die zunehmende Risikosensibilisierung der Banken (hervorgerufen durch die hohe Abschreibung auf uneinbringliche Kredite in der Vergangenheit) sowie die stete Suche der...

Loan syndication suffers from two types of agency problems – an adverse selection problem (lead arrangers pass on bad loans to the participants) and a moral hazard problem (lead arrangers shirk on their costly monitoring duties). Therefore, a lead arranger has to take a big share of the loan...

We present a banking model with imperfect competition in which borrowers' access to credit is improved when banks are able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of loans is public information. If the quality of loans is...

Our paper explores the influence of credit derivatives on bank credit supply theoretically and empirically. We build a two-stage model of financial intermediation, which treats the bank under consideration as one of a large number of monopolists in the local credit market. From the theoretical...

This paper develops a formula to numerically estimate the unsubsidized, fair-market value of the toxic assets purchased with Federal Reserve loans. It finds that subsidy rates on these loans were on average 33.9 percent at origination. In contrast, by the 3rd quarter of the 2010, there was on...