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This study outlines a methodology for mapping the increases in capital and liquidity requirements proposed under Basel … III to bank lending spreads. The higher cost associated with a one percentage point increase in the capital ratio can be …
Persistent link: https://www.econbiz.de/10008725980
could become overly dependent on monetary policy and liquidity sustenance measures provided during deteriorating financial …
Persistent link: https://www.econbiz.de/10008740556
five years anti-cyclical policy and given that there were no serious liquidity problems and capital adequacy ratio for …
Persistent link: https://www.econbiz.de/10010667996
environment in Greece have severely affected the banking sector, which faces funding and liquidity challenges, deteriorating asset … quality, and weakening profitability. This paper aims to investigate how banks’ liquidity interacted with solvency and the … between banks’ liquidity and the business cycle, while allowing for the role of banks’ solvency. Addressing the liquidity risk …
Persistent link: https://www.econbiz.de/10010748242
In this paper I analysed the relation between Romania’s banking system and economic system evolution in the period 2000 – 2013, through a research both theoretical and empirical. The database related to banking system is collected from monthly Reports of National Bank of Romania, while the...
Persistent link: https://www.econbiz.de/10010812412
analysis suggests that preferential treatment in liquidity and capital regulation increases banks' demand for government bonds … beyond their own risk appetite. Liquidity and capital regulation also seem to incentivize banks to substitute other bonds …
Persistent link: https://www.econbiz.de/10010812608
two competing hypotheses regarding the relationship between the level of capital and liquidity creation. Design … insurer capital is negatively related to the level of liquidity creation. This provides implications that insurers with lower … level of capital face more regulatory requirements and are forced to meet liquidity demand more. Practical implications …
Persistent link: https://www.econbiz.de/10010814870
banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability …. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity … and takes excessive risk compared to the social optimum. A Lender of Last Resort can alleviate the liquidity problem, but …
Persistent link: https://www.econbiz.de/10011092076
Abstract: Banking crises involve periods of persistently low credit and economic growth. Banks’ balance sheets are then weak but so are those of non-financial corporate borrowers. Hence, a crucial question is whether credit growth is low due to supply or to demand factors. However convincing...
Persistent link: https://www.econbiz.de/10011092853
institutions relative to the new rules on capital and liquidity. The exercise paints a picture of broad compliance with the …After a decade of deep transformation, which influenced both lending policies and risk management, Italy�s mutual … prudential targets, although some elements warrant greater attention. On the one hand, although the banks� capital endowment is …
Persistent link: https://www.econbiz.de/10011100363