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Credit Fire Sales : Captive Lending as Liquidity in Distress

Benetton, Matteo; Mayordomo, Sergio; Paravisini, Daniel - 2021

We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated … exploit quasi-exogenous variation in manufacturers' liquidity cost and need following the Volkswagen emissions scandal to …

Persistent link: https://www.econbiz.de/10013239503

The "Celtic crisis" : guarantees, transparency, and systemic liquidity risk ; conference paper

König, Philipp Johann; Anand, Kartik; Heinemann, Frank - 2013

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence and stave off bank runs. However, as the experience of some European countries, most notably Ireland, has demonstrated, the credibility and effectiveness of these guarantees is...

Persistent link: https://www.econbiz.de/10010344594

Could the issuance of CBDC reduce the likelihood of banking panic?

Ben Souissi, Soraya; Nabi, Mahmoud Sami - In: Journal of central banking theory and practice 12 (2023) 2, pp. 83-101

This paper delves into the relationship between the issu-ance of Central Bank Digital Currencies (CBDC) and the likelihoodof banking panic. The issuance of CBDC acts as a disturbing shockthat incentivizes depositors to withdraw all/part of their depositsfrom the commercial banks, to swap it for...

Persistent link: https://www.econbiz.de/10014316653

Investor Demands for Safety, Bank Capital, and Liquidity Measurement

Passmore, S. Wayne; Temesvary, Judit - 2020

common measures of bank liquidity. Consistent with our model, our bank-level empirical analysis of these capital-liquidity … tradeoffs show (1) that bank liquidity measures have a strong and negative relationship to its capital ratio for both large and … small banks, and (2) that this relationship has weakened with the advent of stronger liquidity regulation. Our results …

Persistent link: https://www.econbiz.de/10014048751

Do non-banks need access to the lender of last resort? : evidence from fund runs

Breckenfelder, Johannes; Hoerova, Marie - 2023

.6 percentage points and outflows decrease by 61% relative to otherwise similar funds. Following central bank liquidity provision to … banks, the growth rate of repo lending to funds by banks more exposed to the system-wide liquidity crisis was up to five …

Persistent link: https://www.econbiz.de/10014278675

The 'Celtic crisis' : guarantees, transparency and systemic liquidity risk

König, Philipp; Anand, Kartik; Heinemann, Frank - 2013

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated, the credibility and effectiveness of these guarantees are...

Persistent link: https://www.econbiz.de/10009788961

The Economic Perspective of Bank Bankruptcy Law

Marinc, Matej - 2011

This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific characteristics that distinguish banks from other...

Persistent link: https://www.econbiz.de/10013118965

The Economic Perspective of Bank Bankruptcy Law

Marinc, Matej - 2011

Persistent link: https://www.econbiz.de/10013126054

Too-Big-To-Fail and the Modeling of Bank Distress

Galil, Koresh - 2019

This study develops a model for predicting distress events among large banks. We conjecture that a bailout possibility induces different behaviors among small and large banks and therefore separate models may be need for early warning models. We indeed find that a failure prediction model for...

Persistent link: https://www.econbiz.de/10012895930

Liquidity, Leverage, and Lehman : A Structural Analysis of Financial Institutions in Crisis

Chen, Ren-Raw - 2015

The failure of Lehman Brothers highlighted the severe lapses in risk management and regulatory oversight that brought on and intensified the global financial crisis. This paper presents a structural credit risk model that provides useful early warning signals that regulators could have used to...

Persistent link: https://www.econbiz.de/10013035485