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incentive problems in banking. The optimal policy depends not only on the extent, but also on the type of optimism. For example …
Persistent link: https://www.econbiz.de/10012178343
Research problem: Although the economy of Jordan witnessed dramatic volatilities and fundamental variables including market-to-book value ratio and interest rate are located at the middle of these variations; there is a lack in literature regarding the impacts of market fundamentals and...
Persistent link: https://www.econbiz.de/10012221927
In this paper we analyze financial crises, and the interactions of macroprudential policy and credit. Financial crises are recurrent systemic phenomena, often-triggering deep and long-lasting recessions with large reductions in aggregate welfare, output and employment. Importantly for policy,...
Persistent link: https://www.econbiz.de/10011933347
To study the impact of macroprudential policy on credit supply cycles and real effects, we analyze dynamic provisioning. Introduced in Spain in 2000, revised four times, and tested in its countercyclicality during the crisis, it affected banks differentially. We find that dynamic provisioning...
Persistent link: https://www.econbiz.de/10012211192
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
How far should capital requirements be raised in order to ensure a strong and resilient banking system without imposing … scenario of a quantitative macro-banking model, 25% of the long-run welfare gains are lost due to transitional costs. The …
Persistent link: https://www.econbiz.de/10012009227
effect varies across banking crises, market crises, and normal times that occurred in the U.S. over the past quarter century … all times (during banking crises, market crises, and normal times). Second, capital enhances the performance of medium and … large banks primarily during banking crises. Additional tests explore channels through which capital generates the …
Persistent link: https://www.econbiz.de/10011893182
Banking crises are recurrent phenomena, often induced by excessive bank risk-taking, which may be due to behavioral …
Persistent link: https://www.econbiz.de/10012236849
One of the most dramatic trends in banking since the 1980s has been the secular movement away from core banking and …
Persistent link: https://www.econbiz.de/10011342495