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banks to collect loans in a nonmonotonic way, a bank may be forced to exceed capital requirements. Moreover, high capital …
Persistent link: https://www.econbiz.de/10005232591
, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …
Persistent link: https://www.econbiz.de/10011710170
In this paper, we develop a contingent claim model to evaluate a bank’s equity and liabilities that integrates the … regulation. The barrier options theory of corporate security valuation is applied to the contingent claims of a bank. The barrier … products (WMPs) and entrusted loans (ELs). The optimal bank interest margin, i.e., the spread between the loan rate and the …
Persistent link: https://www.econbiz.de/10011884164
Bank regulators interfere with the efficient allocation of resources for the sake of financial stability. Based on this …
Persistent link: https://www.econbiz.de/10013198370
requirements. We find that an increase in the bankspecific regulatory capital requirement results in a higher bank capital ratio … and higher bank leverage. We do not observe differences between confidential and public disclosure of capital requirements …. Our results empirically illustrate a tradeoff between bank resilience and a fostering of the economy through more bank …
Persistent link: https://www.econbiz.de/10011865005
I develop a theoretical model to examine the effect of capital requirements on risk taking and market structure of banks. Within a portfolio choice model, I allow for heterogeneous productivity among banks and consider the simultaneous capital regulation with a leverage ratio and a risk-weighted...
Persistent link: https://www.econbiz.de/10011888053
I develop a theoretical model to examine the effect of capital requirements on risk taking and market structure of banks. Within a portfolio choice model, I allow for heterogeneous productivity among banks and consider the simultaneous capital regulation with a leverage ratio and a risk-weighted...
Persistent link: https://www.econbiz.de/10011933372
this study, we argue that bank efficiency generates incentives that can impact banks’ capital holdings and the cost of … positive impact on bank capital during the global financial crisis of 2007–2009. We also observe that on average, banks … intermediation costs. Our results imply the beneficial impact of bank efficiency for bank stability and real economy. …
Persistent link: https://www.econbiz.de/10011760329
This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …
Persistent link: https://www.econbiz.de/10011662963
Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...
Persistent link: https://www.econbiz.de/10012643066