Is there any need to "clean" up a banking system in the midst of a crisis, by closing or recapitalizing weak banks and taking bad assets off bank balance sheets, or can one wait till the crisis is over? We argue that an "overhang" of impaired banks that may be forced to sell assets soon can...

Two alternative funding modes for a commercial bank are compared, deposits and securitization. Our model includes the two-sided asymmetric information setup of Diamond and Dybvig (1983) and Jacklin and Bhattacharya (1988) and a dynamic aspect with the introduction of a valuable new investment...

Evaluating credit risk is an important task for financial institution managers. In order to measure the risk pertaining to the borrower, these institutions often use a rating system to establish the credit risk. In this study, a multicriterion approach was chosen to elaborate a rating system for...

Evaluating credit risk is an important task for financial institution managers. In order to measure the risk pertaining to the borrower, these institutions often use a rating system to establish the credit risk. In this study, a multicriterion approach was chosen to elaborate a rating system for...

This paper investigates the evolution of the (conditional) volatility of returns on three Scandinavian markets (Finland, Norway and Sweden) over the turbulent period of the past decade, namely the overlapping periods of financial liberalisation, drastically changing macroeconomic conditions and...

Is commercial banking in the traditional sense obsolete? Are we in fact witnessing the emergence of a fundamentally new era of finance and payments intermediation? These questions are raised in this paper. Instead of a formal analysis, an attempt is made here to approach these questions from a...

This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in the housing market. We argue that the importance of this channel for investment in residential housing is highly dependent on the structural features, and particularly the...

The rating-sensitive capital charges on credit risks under the new Basel Accord are likely to increase the volatility of minimum capital requirements, which may force banks to hold larger capital cushions in excess of minimum requirements. We analyse this claim on the basis of numerical...

The purpose of this paper is to assess whether the widely-held markup theory of interest rate determination, first put forth by Rousseas in the mid-1980s, is sufficiently robust empirically or whether one aspect of Keynesian liquidity preference theory, that which emphasizes the role of banks's...

On peut identifier un modele anglo-saxon de financement, ou le salaries consommateurs detiennent directement les actions des entreprise, et le modele europeen (continental) , ou ils detiennent des actifs bancaires (sans risque) et ou les entreprises sont financees par le credit. Dans le premier...