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this study, we argue that bank efficiency generates incentives that can impact banks' capital holdings and the cost of … positive impact on bank capital during the global financial crisis of 2007-2009. We also observe that on average, banks … intermediation costs. Our results imply the beneficial impact of bank efficiency for bank stability and real economy. …
Persistent link: https://www.econbiz.de/10011996065
criticized new regulation on the ground that it would enhance the cost of funds for bank borrowers and deteriorate the bank … profitability. In this study, we examine the impact of capital requirements on the cost of financial intermediation and bank … generalized method of moments (GMM) estimator, we find robust evidence that higher bank regulatory capital ratios reduce the cost …
Persistent link: https://www.econbiz.de/10011669026
In the months preceding the failure of Lehman Brothers in September 2008, banks were willing to pay a premium over the Federal Reserve's discount window (DW) rate to participate in the much less flexible Term Auction Facility (TAF). We empirically test the predictions of a new signalling model...
Persistent link: https://www.econbiz.de/10011408663
This paper studies the relationship between liquidity demand risk, deposit diversification and insurance in 12 countries during the period 2005-2014. We capture liquidity risk by focusing on the unfunded loan commitments. We find that higher diversification in the deposit base can reduce the...
Persistent link: https://www.econbiz.de/10012903002
Persistent link: https://www.econbiz.de/10011790739
This study investigates the relationship between bank capital and risk in the Indian banking sector. The sample … on capital with some bank-specific variables and regulatory pressure as control variables using generalised method of … moments (GMM) technique. The results reveal that bank risk, bank-specific variables and regulatory pressure are significantly …
Persistent link: https://www.econbiz.de/10012023171
because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …
Persistent link: https://www.econbiz.de/10011925841
it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …
Persistent link: https://www.econbiz.de/10011977827
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/10012643066
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