This study takes advantage of a natural experiment to trace out the supply-side effects of nontraditional assets on loan portfolios. The natural experiment centers on the recent accounting standards that require banks to transfer off-balance sheet securitized assets onto balance sheets,...

This paper presents the results of the Mercatus Center's Small Bank Survey, which include responses from approximately 200 banks across 41 states with less than $10 billion in assets each, serving mostly rural and small metropolitan markets. The initial analysis suggests that Dodd-Frank...

As broker-dealers, investment bankers must register with the Financial Industry Regulatory Authority (“FINRA”) and comply with its rules, including the requirement to “observe high standards of commercial honor and just and equitable principles of trade.” As the self-regulatory body for...

In this study, we show that when a firm needs external financing, information quality has real effects via financing contracts on the firm's input to influence its operational outcome. Interestingly, we find that higher information quality decreases overall efficiency. Our analysis highlights...

This paper examines how product market threats shape the use of performance pricing in loan contracts. Loan contracting faces a trade-off between financial markets and product markets: while using contractual terms that are linked to borrower performance -- such as performance pricing --...

Bank holding companies invest in risky projects through regulated bank entities and sell projects for a fee, thus engaging in shadow banking. To increase the fee income, BHCs guarantee sold projects with bank proceeds. When demand for financial assets is high, BHCs expand their own bank...

Mortgage dollar roll is the most common financing strategy for agency MBS. Effectively a collateralized loan, it differs from repos in two important ways: the returned collateral can differ from those received, and the MBS ownership changes hands in the funding period. Therefore, dollar roll...

In economic and political environment is exposed of each country of SEE acceleration and strengthening market discipline and protection of the credit system are a priority task. One of the mechanisms that contributes to the establishment and implementation of financial discipline is also a...

This study utilizes data from the Federal Reserve Board's Surveys of Small Business Finances (SSBFs) and from the Kauffman Foundation's Kauffman Firm Surveys (KFSs) to provide new evidence on how business credit scoring affects the availability of credit to female- and minority-owned firms. SSBF...

How do foreign banks respond to financial crises? Does their response depend on their organizational form, size, and nationality? Do foreign banks perform better than domestic banks? In this chapter, we address all these questions by examining the performance of banks operating in the Luxembourg...