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This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing a stylized representative bank’s financial statements. We show that the higher cost associated with a one-percentage increase in the capital ratio can be recovered by...
Persistent link: https://www.econbiz.de/10011112690
This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … in other "safe" countries will impose tighter regulation. As a result, governments in risky countries get to borrow more …
Persistent link: https://www.econbiz.de/10009786077
One of the largest responses of the U.S. government to the recent financial crisis was the Troubled Asset Relief Program (TARP). TARP was originally intended to stabilize the financial sector through the increased capitalization of banks. However, recipients of TARP funds were then encouraged to...
Persistent link: https://www.econbiz.de/10013108932
We explore how large and small banks make funding decisions when the government provides system-wide bailouts to the … complements. Overall, the presence of large banks increases aggregate leverage and the magnitude of bailouts. The optimal ex …-ante regulation features size-dependent policies that disproportionally restrict the leverage choices of large banks. A quantitative …
Persistent link: https://www.econbiz.de/10012941039
This study investigates the efficiency of large commercial banks in Asia and the Pacific region. In particular, the overall technical efficiency, pure technical efficiency and scale efficiency has been estimated, the factors (including, the environmental factors) that influence efficiency of...
Persistent link: https://www.econbiz.de/10013004387
capital in excess of minimum capital requirement regulation. Empirically, banks do not adjust their lending portfolio dollar …
Persistent link: https://www.econbiz.de/10012849874
This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing a stylized representative bank's financial statements. We show that the higher cost associated with a one-percentage increase in the capital ratio can be recovered by increasing...
Persistent link: https://www.econbiz.de/10013048007
In September 2008, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were placed into conservatorship and dividend payments on common and preferred shares were suspended. As a result, share prices fell to nearly zero and many banks across the country lost the value of their...
Persistent link: https://www.econbiz.de/10013057066
This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … in other “safe” countries will impose tighter regulation. As a result, governments in risky countries get to borrow more …
Persistent link: https://www.econbiz.de/10013076729
One of the largest responses of the US government to the recent financial crisis was the Troubled Asset Relief Program (TARP). TARP was originally intended to stabilize the financial sector through the increased capitalization of banks. However, recipients of TARP funds were then encouraged to...
Persistent link: https://www.econbiz.de/10010729651