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Regulation, Credit Risk Transfer with CDS, and Bank Lending

Pausch, Thilo; Welzel, Peter - In: Credit and Capital Markets 46 (2013) 4, pp. 439-465

We integrate Basel II (and III) regulations into the industrial organization approach to banking and analyze the … interaction between capital adequacy regulation and credit risk transfer with credit default swaps (CDS) including its effect on … at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk …

Persistent link: https://www.econbiz.de/10010757770

Bank complexity, governance, and risk

Correa, Ricardo; Goldberg, Linda S. - 2020

Bank holding companies (BHCs) can be complex organizations, conducting multiple lines of business through many distinct legal entities and across a range of geographies. While such complexity raises the costs of bank resolution when organizations fail, the effect of complexity on BHCs' broader...

Persistent link: https://www.econbiz.de/10012234342

Less bank regulation, more non-bank lending

Chen, Mary; Lee, Seung Jung; Neuhann, Daniel; Saidi, Farzad - 2024

Bank deregulation in the form of the repeal of the Glass-Steagall Act facilitated the entry of non-bank lenders into the market for syndicated loans during the pre-2008 credit boom. Institutional investors disproportionately purchase tranches of loans originated by universal banks able to...

Persistent link: https://www.econbiz.de/10014533282

The Cost of Bank Regulatory Capital

Plosser, Matthew C. - 2018

The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to set aside capital when they extended commitments with maturities in excess of one year, short-term commitments were not subject to a capital requirement. The Basel II Accord...

Persistent link: https://www.econbiz.de/10012916405

Competition and Bank Risk : Evidence from Geographic Bank Deregulation

Berger, Allen N. - 2019

We examine the effects of competition on bank risk. We find strong evidence that interstate banking deregulation … increases bank risk. Further, interstate banking reduces bank risk more in sparsely populated states. Additional analyses … suggest that in contrast to previous studies that focus on large banks, the impact of interstate banking deregulation on bank …

Persistent link: https://www.econbiz.de/10012864308

The Uncertain Role of Banks’ Corporate Governance in Systemic Risk Regulation

Mülbert, Peter O.; Citlau, Ryan D. - 2011

-level sources of risk are much easier for corporate governance and regulation to address than risk arising at the systemic level … limited role in the regulation of systemic risk and then relates this discussion to the current state of affairs in the …

Persistent link: https://www.econbiz.de/10014180082

Evolution of Debt Financing Toward Less Regulated Financial Intermediaries

Erel, Isil; Inozemtsev, Eduard - 2022

Nonbank lenders have been playing an increasingly important role in the supply of debt financing, especially post Great Recession. These nonbank financial institutions not only participate in syndicated loans to large businesses but also act as direct lenders to small and mid-sized businesses,...

Persistent link: https://www.econbiz.de/10013404927

Does Banking Competition Really Increase Credit for All? The Effect of Bank Branching Deregulation on Small Business Credit

Lynch, John - 2022

In this paper, I quantify the extent to which financial constraints limit the scope of activity of small firms, influence their labor decisions, and impact their ultimate survival. Using the U.S. branching deregulation from the 1990s, I document that local markets within deregulated states...

Persistent link: https://www.econbiz.de/10013405115

The UBS-Credit Suisse Merger : Helvetia's Gift

Böni, Pascal; Kroencke, Tim-Alexander; Vasvari, Florin P. - 2023

The UBS- Credit Suisse (CS) merger in March 2023, one of the biggest banking unions in history, was an emergency rescue … deal engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The merger resulted in a …

Persistent link: https://www.econbiz.de/10014349670

A lost game of bank gargains : West Germany and international banking regulation between Bretton Woods and Basel I (1972-1988)

Kemmerer, Matthias - In: Jahrbuch für Wirtschaftsgeschichte 64 (2023) 2, pp. 339-375

Current theories of financial regulation suggest expanding rules-based formal state intervention to promote … international banking stability. Such policy solutions should then be global in scope. This article instead argues that principles …-based informal co- and self-regulation through domestic (gentlemen's) agreements underpinned West German bank internationalisation …

Persistent link: https://www.econbiz.de/10014436557