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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/10012064522
experienced serious liquidity and solvency problems. Based on the new policy of the State Bank of Vietnam, in order to ensure safe … paper investigates the effects of the Basel II capital requirement implementation in Viet Nam on the bank lending rate and …). The main finding of the paper is that at the bank level, a tightening of regulatory capital requirements does not induce a …
Persistent link: https://www.econbiz.de/10011959821
, 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/10011978342
leverage faced tighter constraints in accessing bank credit after the COVID-19 outbreak in spring 2020. Specifically, SMEs with … Paycheck Protection Program (PPP), mitigated the adverse real effect stemming from bank credit constraints. …
Persistent link: https://www.econbiz.de/10013414903
A parsimonious extension of a well-known portfolio credit-risk model allows us to study a salient stylized fact - abrupt switches between high- and low-loss phases - from a risk-management perspective. As uncertainty about phase switches increases, expected losses decouple from unexpected...
Persistent link: https://www.econbiz.de/10012814386
What is the impact of a sudden and sizeable increase in bank capital requirements on the lending activity by directly … affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference … activities, in riskier and more competitive borrower segments, but NBFIs do not seem to rely on increased bank funding to finance …
Persistent link: https://www.econbiz.de/10014384399
We study banks' optimal equity buffer in general equilibrium and their response to under-capitalization. Making progress towards a "pecking order theory" for private recapitalizations, our benchmark model identifies equity issuance as individually and socially optimal, compared to deleveraging,...
Persistent link: https://www.econbiz.de/10011901386
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011554963
How do banks set their target capital ratio? How do they adjust to reach it? This paper answers these questions using an original dataset of capital ratio targets directly announced to investors by European banks, materially improving data quality compared to usual estimated implicit target. It...
Persistent link: https://www.econbiz.de/10012705420
In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between … bank loan growth and bank capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank …
Persistent link: https://www.econbiz.de/10012030770