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How Six Large Banks Reacted to a Basel III Proposal to Include Credit Derivatives in the Leverage Ratio

Fischer, Dov - 2015

In the wake of the 2008 financial crisis, bank regulators are paying more attention to derivatives. In a move that can be seen as a step away from fair-value accounting, bank regulators (Basel III) have proposed to calculate bank leverage ratios using notional values, rather than fair values, of...

Persistent link: https://www.econbiz.de/10013034704

Is Accounting Enforcement Related to Risk-Taking in the Banking Industry?

Dal Maso, Lorenzo - 2020

Using a sample of banks from 36 countries, we document that accounting enforcement is negatively related to bank risk-taking. We also provide evidence that accounting enforcement enhances bank stability during the crisis. In addition, we show that banks assume less risk through more conservative...

Persistent link: https://www.econbiz.de/10012829987

A Tale of Two Supervisors : Compliance with Risk Disclosure Regulation in the Banking Sector

Bischof, Jannis; Daske, Holger; Elfers, Ferdinand; … - 2022

We examine how the presence of multiple supervisory agencies affects firm-level compliance in form and substance with disclosure regulations. This analysis is important because coordination problems among regulators are frequently present in practice but often overlooked in academic research. We...

Persistent link: https://www.econbiz.de/10013294971

Does IFRS 9 increase banks' resilience?

Kund, Arndt-Gerrit; Rugilo, Daniel - 2023

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the "cliff-effect", which refers to sudden...

Persistent link: https://www.econbiz.de/10014230334

Managerial discretions and loan loss provisions in Nigerian banks : empirical IFRS and risk evidence

Salami, Abdulai Agbaje; Uthman, Ahmad Bukola; Owoade, … - In: Central European review of economics and management : CEREM 6 (2022) 2, pp. 71-115

Aim: The high level of non-performing exposures and the existing crisis in the Nigerian banking sector is a source of concern. To create a basis for solving the troubles caused by the loan loss crisis, this study investigated the managerial discretionary use of loan loss provisions (LLPs) by...

Persistent link: https://www.econbiz.de/10013325543

Creditor Rights, Threat of Liquidation, and Labor-Capital Choice of Firms

Alok, Shashwat - 2020

In 2002, a legal reform introduced in India allowed secured creditors to seize and liquidate the defaulter's assets. We study firms' choice between capital and labor in response to these strengthened creditor rights by exploiting variation in their pre-policy proportion of collateralizable...

Persistent link: https://www.econbiz.de/10012850410

Creditor Rights and Strategic Default : Evidence from India

Tantri, Prasanna L. - 2020

I examine whether higher creditor rights prevent strategic default. Borrowers who cross either of two thresholds are exempt from a creditor rights law in India. Using a loan day-level dataset, I ﬁnd that loan performance is better when the law applies and that outperformance increases after a...

Persistent link: https://www.econbiz.de/10012840858

Creditor Rights and Aggregate Factors in Loan Terms

Knyazeva, Anzhela - 2018

Weak creditor rights introduce contracting frictions and magnify conflicts of interest between borrowers and creditors. We examine the effects of creditor rights on the sensitivity of bank lending terms to aggregate relative to firm-specific information. We formulate two competing hypotheses. On...

Persistent link: https://www.econbiz.de/10012908921

Corporate Restructuring and Creditor Power : Evidence from European Insolvency Law Reforms

Closset, Frédéric; Großmann, Christoph; Kaserer, … - 2021

In an attempt to match US bankruptcy law, many European countries have reformed their insolvency laws towards a regime … difference-in-differences analysis around eight insolvency reforms in 15 European countries, this paper finds a relative increase …. Overall, the results are consistent with the view that creditors may be negatively affected by insolvency law reforms oriented …

Persistent link: https://www.econbiz.de/10013244320

Debt Covenant Renegotiations and Creditor Control Rights

Denis, David J. - 2013

Using a large sample of private debt renegotiations from 1996 to 2011, we report that, even in the absence of any covenant violation, debt covenants are frequently renegotiated. These renegotiations primarily relax existing restrictions and result in economically large changes in existing...

Persistent link: https://www.econbiz.de/10013076958