The effective organization of cross-border banking is likely to include both subsidiaries and branches. The choice from a bank's point of view depends on the nature of financial services provided, the nature of the market served, tax systems and the types of risk the bank faces in home and host...

Rapid credit growth seems to precede many episodes of banking crises in both advanced and emerging market economies including the recent global financial crisis of 2007-09. All episodes of high credit growth are not followed by crisis, however. We argue that credit growth is more likely to lead...

Although macroeconomic factors are part of several models for evaluation of credit risk, there is little effort to distinguish between effects of such factors and “intrinsic” factors on changes in credit risk. We argue that lenders, management, courts and traders in distressed securities...

This paper focuses on the need for a lex specialis for resolution of insolvent banks and other financial institutions serving similar functions, and on requirements for making resolution procedures effective. After a review of the objectives of general insolvency law and the special...

We extend much research that has been devoted to the effects of the EMU on international trade by introducing monetary regime variables in bilateral export equations with the objective of capturing the effects on trade of changes in monetary regimes relative the pure EMU effects. In addition, we...

Explicit deposit insurance is a two-edged sword with respect to risk taking. High explicit coverage creates incentives to shift risk to a deposit insurance fund or taxpayers; low explicit coverage may be associated with strong implicit insurance reflecting lack of credibility of non-insurance....

Property prices in the USA have varied widely during the postwar period. The main points that arise from our analysis of the 1980s are (i) fundamental determinants explain only parts of the price swings (ii), regulatory are legislative changes reinforced the price swings but we cannot exclude...

This paper explores insolvency and debt recovery procedures, and political, legal, and institutional factors influencing financial decisions of corporations and banks during pre-crisis years in six Asian economies. It also examines whether these factors may have contributed to the depth and...

We analyse how soft information acquired at a cost by a lender affects the debt contract between the lender and a project manager, and the manager's incentive to invest in a specific asset. Under certain conditions, the lender chooses to acquire soft information about the profitability of the...

We ask how deposit insurance systems and ownership of banks affect the degree of market discipline on banks' risk-taking. Market discipline is determined by the extent of explicit deposit insurance, as well as by the credibility of non-insurance of groups of depositors and other creditors....