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Capital requirements play a key role in the supervision and regulation of banks. The Basel Committee on Banking Supervision is now changing the current framework by introducing risk-sensitive capital charges. There have been concerns that this will unduly increase volatility in the banks'...
Persistent link: https://www.econbiz.de/10010295899
higher minimum capital ratio (about 10%). These results indicate that tighter bank requirements temporally mitigate crises in …
Persistent link: https://www.econbiz.de/10014232599
bank's failure risk solely by means of liquidity requirements. However, their effectiveness can be restored if, in addition …
Persistent link: https://www.econbiz.de/10010270814
further split the samples of countries on the basis of the median levels of lending and the deposit rate spread, foreign bank …
Persistent link: https://www.econbiz.de/10011527140
government subsidies to firms affect credit markets. We identify credit market responses by considering both, bank lending and …
Persistent link: https://www.econbiz.de/10015062319
Unternehmensauslandsinvestitionen und der Kapitalstruktur der finanzierenden Banken zu untersuchen. Es wird gezeigt, dass Multinationale Unternehmen … Depositenrefinanzierung der Bank zwar die Finanzierungskosten senkt, jedoch das Unternehmen dazu zwingt, vornehmlich im Heimatland zu …
Persistent link: https://www.econbiz.de/10010269964
In this paper we study interdependencies between corporate foreign investment and the capital structure of banks. By committing to invest predominantly at home, firms can reduce the credit default risk of their lending banks. Therefore, banks can refinance loans to a larger extent through...
Persistent link: https://www.econbiz.de/10003447827
imperfectly elastic supply of bank equity stemming from financial market segmentation. In our model, equity is costly and serves … and the design of bank stress testing. …
Persistent link: https://www.econbiz.de/10011341895
We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … and fragility. Deposit insurance and the expectation of government bailouts increase not only bank risk taking, but also …
Persistent link: https://www.econbiz.de/10010259793
This paper investigates bank portfolio composition under Basel II where the amount of required capital is determined by … bank's own risk assessment. We particularly show that in presence of asymmetric information between the bank and the …
Persistent link: https://www.econbiz.de/10013134795