Showing 81 - 90 of 161,215
This paper studies bank new equity offerings in response to recently strengthened Basel capital regulation. Our … regulation, though the banks were not capital deficient relative to the current regulatory minimum. In sharp contrast to the … negative abnormal returns. Bank equity offerings in response to strengthened regulation convey negative information on the …
Persistent link: https://www.econbiz.de/10013033758
It is assumed that the awarding of a "systemic importance" seal by the regulator has a positive effect on the equity value of its holder. By employing an event study analysis on a new set of regulatory announcements, we find that financial market participants react to these announcements which...
Persistent link: https://www.econbiz.de/10013034358
higher adjustment costs, due to the weaker governance and stricter regulation, the adjustment is significantly slower. Banks … monitoring and have more competitive banking systems. Identifying the drivers of banks' adjustment speed towards target capital … ratios contributes to our understanding of which settings influence (i) the pro-cyclicality of capital regulation and (ii …
Persistent link: https://www.econbiz.de/10013038131
PurposeThe purpose of this paper is to examine the effects of bank mergers on systemic and systematic risks on the relative merits of product and market diversification strategies. It also observes determinants of M&A deals criteria, product and market diversification positioning, crisis...
Persistent link: https://www.econbiz.de/10013244787
The issue of bank dividend regulation has become highly controversial as the stress induced on bank capital during the … 2008 financial crisis and the covid pandemic created a demand for enhanced regulation and restrictions on bank dividend … contributed to the stability of the U.S. banking system in the post-depression era …
Persistent link: https://www.econbiz.de/10013245206
economics of bank liquidity creation, both in the traditional relationship banking context and in the shadow banking context …. The related prudential regulation issues – pertaining mainly to capital requirements and liquidity requirements – are also …
Persistent link: https://www.econbiz.de/10013078020
To calculate regulatory capital ratios, banks have to apply adjustments to book equity. These adjustments vary with a bank's solvency position: Low solvency banks report values of Tier 1 regulatory capital that exceed book equity. These banks benefit from regulatory adjustments to inflate...
Persistent link: https://www.econbiz.de/10013063353
banking industrial organisation and its economic consequences. We document a novel trade-off: the potential benefits of …
Persistent link: https://www.econbiz.de/10013313377
Economists have extensively analyzed the regulation of banks and the banking industry, but have devoted considerably … less attention to bank supervision as a distinct activity. Indeed, much of the banking literature has used the terms … "supervision" and "regulation" interchangeably. This paper provides a heuristic review of the economics literature on …
Persistent link: https://www.econbiz.de/10012391496
We use an expansive regulatory loan-level data set to analyze how the portfolios of the largest US banks have changed in response to the Dodd-Frank Act Stress Test (DFAST) requirements. We find that the portfolios of the largest banks, which are subject to stress-testing, have become more...
Persistent link: https://www.econbiz.de/10012395110