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This paper examines the characteristics of the financial system that tend to accentuate the economy's cyclical fluctuations and, on occasion, end up causing asset bubbles and financial crises, like the one that started in 2007 with the US subprime mortgages. The paper discusses, first, some...
Persistent link: https://www.econbiz.de/10013159073
geographically diversified banks diverting funds away from economies experiencing negative shocks towards other unaffected economies …
Persistent link: https://www.econbiz.de/10012839265
Brazil experienced one of the most severe recessions in its history from 2014 to 2016. Following a pattern shown for previous economic downturns in other countries, the Brazilian recession was preceded by a substantial increase in household debt from 2003 to 2014. This study utilizes a novel...
Persistent link: https://www.econbiz.de/10012909747
impact of capital on lending in the sample of banks reporting unconsolidated data. This is consistent with the view that … on loan growth of large EU banks in 1996-2011. We focus on several measures of the quality of investor protection with a … particular during economic booms, which results in greater sensitivity of bank lending to capital ratios in economic downturns …
Persistent link: https://www.econbiz.de/10013011796
We present a capital regulation policy in a model in which banks can choose to be unregulated, by operating in the …
Persistent link: https://www.econbiz.de/10012857353
in which macroprudential policy is associated with reduced procyclicality of lending, some degree of market power is …Despite the extensive debate on the effects of bank competition on risk-taking and procyclicality, there is no evidence … of its role in the effects of macroprudential policy on loans' growth and on the sensitivity of lending to the business …
Persistent link: https://www.econbiz.de/10012861004
cycles forecasting by the central banks with the purpose to make the strategic decisions on the monetary policies, financial …
Persistent link: https://www.econbiz.de/10013024582
The alleged pro-cyclicality of bank capital (high in good times, low in bad) has received some blame for the recent … address this problem, Basel III has introduced countercyclical capital buffers for large banks. But just how cyclical is bank …
Persistent link: https://www.econbiz.de/10013025641
We examine, conditional on structural shocks, the macroeconomic performance of different countercyclical capital buffer (CCyB) rules in small open economy estimated medium scale DSGE. We find that rules based on the credit gap create a trade-off between the stabilization of fluctuations...
Persistent link: https://www.econbiz.de/10012921203
banks, small banks show a different pattern, with strongly pro-cyclical capital ratios (countercyclical leverage) …
Persistent link: https://www.econbiz.de/10012927449