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The role of structural funding for stability in the German banking sector

Schupp, Fabian; Silbermann, Leonid - 2017

We analyze whether, and if so by how much, stable funding would have contributed to the financial soundness of German banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity mismatches in the wake of the financial crisis via the Net...

Persistent link: https://www.econbiz.de/10011627406

The role of structural funding for stability in the German banking sector

Schupp, Fabian; Silbermann, Leonid - 2017

Persistent link: https://www.econbiz.de/10011608695

Potential implications of a NSFR on German banks' credit supply and profitability

Schmitt, Matthias; Schmaltz, Christian - 2016

We study how a Net Stable Funding Ratio as defined by the Basel Committee in 2014 (NSFR (2014)) would affect the … profitability of German banks and their capacity to lend. With a NSFR-model that is partially calibrated against reported NSFRs, we … find that 9% of German banks do not comply with the NSFR (2014). This is a significant reduction compared to the 39% that …

Persistent link: https://www.econbiz.de/10011541056

Discussion of "Systemic Risk and the Solvency-Liquidity Nexus of Banks"

Adrian, Tobias - 2015

Pierret (2015) presents empirical analysis of the solvency-liquidity nexus for the banking system, documenting that a shock to the level of banks' solvency risk is followed by lower short-term debt. Conversely, higher short-term debt Granger-causes higher solvency risk. These results point...

Persistent link: https://www.econbiz.de/10011341020

Benefits and costs of liquidity regulation

Hoerova, Marie; Mendicino, Caterina; Nikolov, Kalin; … - 2018

current Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) rules would have reduced banks' reliance on … investigates the output costs of introducing the LCR and NSFR using two macro-financial models. We find these costs to be modest. …

Persistent link: https://www.econbiz.de/10011916873

Implications of bank regulation for loan supply and bank stability: A dynamic perspective

Bucher, Monika; Dietrich, Diemo; Hauck, Achim - 2018

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future vulnerability to bankruptcy risks. We study these...

Persistent link: https://www.econbiz.de/10011919020

Interbank market and central bank policy

Ahn, Jung-Hyun; Bignon, Vincent; Breton, Régis; … - 2016

We develop a model in which financial intermediaries hold liquidity to protect themselves from shocks. Depending on parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal amount. The model endogenously generates a situation of...

Persistent link: https://www.econbiz.de/10011460628

The effect of monetary policy on bank wholesale funding

Choi, Dong Beom; Choi, Hyun-Soo - 2016

We study how monetary policy affects the funding composition of the banking sector. When monetary tightening reduces the retail deposit supply owing to, for example, a decrease in bank reserves or in money demand, banks try to substitute the deposit outflows with more wholesale funding in order...

Persistent link: https://www.econbiz.de/10011460643

The bank liquidity channel of financial (in)stability

Bosshardt, Joshua; Kakhbod, Ali; Saidi, Farzad - 2021

We examine the system-wide effects of liquidity regulation on banks' balance sheets. In the general equilibrium model, banks have to hold liquid assets, and choose among illiquid assets varying in the extent to which they are difficult to value before maturity, e.g., structured securities. By...

Persistent link: https://www.econbiz.de/10012653862

Outside liquidity, rollover risk, and government bonds

Luck, Stephan; Schempp, Paul - 2014

This paper discusses whether financial intermediaries can optimally provide liquidity, or whether the government has a role in creating liquidity by supplying government securities. We discuss a model in which intermediaries optimally manage liquidity with outside rather than inside liquidity:...

Persistent link: https://www.econbiz.de/10010420316