Showing 171 - 180 of 167,855
This paper develops a model of banking to study the risk-taking consequences of contingent capital (CC). It begins with the observation that partial conversion of CC provides its owners with a portfolio of equity and debt. Since the former (latter) asset typically induces a preference for risk...
Persistent link: https://www.econbiz.de/10011921926
We examine the optimal size and composition of banks' total loss absorbing capacity (TLAC). Optimal size is driven by the trade-off between providing liquidity services through deposits and minimizing deadweight default costs. Optimal composition (equity vs. bail-in debt) is driven by the...
Persistent link: https://www.econbiz.de/10011978192
We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period …
Persistent link: https://www.econbiz.de/10012510180
Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …
Persistent link: https://www.econbiz.de/10011868435
This paper analyzes the level and cyclicality of bank capital requirement in relation to (i) the model methodologies … mortgage loans. The major finding is that less accurate models may lead to a lower bank capital requirement for real estate …
Persistent link: https://www.econbiz.de/10013073289
Constructing a strong and unique instrument for bank capital from the empirical observation of Japanese banks’ past … behavioral changes, we identify the impact of capital adequacy on the allocation of bank lending supply across low quality and …-greening ; flight to quality ; bank capital ; instrumental variable …
Persistent link: https://www.econbiz.de/10002235059
activities. The government envisaged that the Act, together with other bank reforms, would improve credit risk management … lending to state-owned enterprises (SOEs). This paper examines the lending behavior of a government-controlled commercial bank … before and after the passage of the Act. We find that the bank tightened control of the credit risk of borrowers after the …
Persistent link: https://www.econbiz.de/10012964450
This paper is the first to assess the Troubled Asset Relief Program (TARP) at loan level by looking at the structure of loan syndicates. While the purpose of TARP was to stimulate the flow of credit during the economic downturn, the low cost of capital could have functioned as a double-edged...
Persistent link: https://www.econbiz.de/10013012954
. We are the first to estimate how deposit insurance impacts bank financial reporting …
Persistent link: https://www.econbiz.de/10013314385
We study how banks react to policy announcements during the representative policy cycle of consultation and policy publication. We use unique data covering the population of all mortgage transactions in the UK complemented with regulatory risk assessments of banks and their supervisory...
Persistent link: https://www.econbiz.de/10012421476