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Persistent link: https://www.econbiz.de/10003971182
Banks are highly leveraged institutions, potentially attracted to speculative lending even without deposit insurance. A counterbalancing incentive to lend prudently is the risk of loss of charter value, which depends on future rents. We show in a dynamic model that current concentration does not...
Persistent link: https://www.econbiz.de/10005792492
banking systems have been characterised by strong implicit insurance operating through the expectation of public intervention …
Persistent link: https://www.econbiz.de/10011604093
The second Basel Capital Accord points to market discipline as a tool to reinforce capital standards and supervision in promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong incentives on banks to operate in a safe and...
Persistent link: https://www.econbiz.de/10011687927
The second Basel Capital Accord points to market discipline as a tool to reinforce capital standards and supervision in promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong incentives on banks to operate in a safe and...
Persistent link: https://www.econbiz.de/10011582019
Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of financial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees...
Persistent link: https://www.econbiz.de/10013553424
role for preserving the stability of the banking sector, especially in economies where banks are the main source of funding … - VECM) applied to quarterly time series of the banking sector, covering the period from 2003Q2 to 2013Q3. The findings of … this study suggest that the capital buffer of the banking sector in the Republic of Macedonia is determined by the credit …
Persistent link: https://www.econbiz.de/10011533418
Our research explores the determinants of capital buffers in Indonesian Islamic banking, which is ranked 10th in the … implemented immediately according to Indonesian Islamic bank law no 23/2008 to encourage strong and sound Islamic banking in …
Persistent link: https://www.econbiz.de/10014521373
Employing data on Indian banks for 1997-2006, we test the behavior of capital buffers over the business cycle. The evidence indicates that capital buffers exhibit pro-cyclical behavior, although the implied effects are small.
Persistent link: https://www.econbiz.de/10008516561
environmental transparency. The results indicate that safer banks have greater social-environmental transparency, and banking social …
Persistent link: https://www.econbiz.de/10014308841