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Internal Ratings-Based approach affects the bank loan pricing mechanism, by developing a multiperiod risk-adjusted pricing … provides an immediate support for bank managers in making a loan price-related decision …
Persistent link: https://www.econbiz.de/10013131209
This paper investigates bank portfolio composition under Basel II where the amount of required capital is determined by … bank's own risk assessment. We particularly show that in presence of asymmetric information between the bank and the …
Persistent link: https://www.econbiz.de/10013134795
adjustment model. Overall, consistent with the findings from the corporate finance literature, we find that bank capital … policy initiatives that aim to strengthen the bank capital regulation by introducing a minimum leverage ratio and by …
Persistent link: https://www.econbiz.de/10013136801
The Basel Committee's reform to strengthen the global capital framework, known as Basel III, takes into account a series of measures to address procyclicality and, consequently, make banks' capital requirements more stable during the different phases of the economic cycle. The range of possible...
Persistent link: https://www.econbiz.de/10013114408
are badly taken into account in the current bank capital regulation framework. These results might help us to better …
Persistent link: https://www.econbiz.de/10013115325
This paper justifies, in an agency context, the existence of hybrid securities appeared very recently on the organized market: the cocos (contingent convertible bonds). Like the straight debt, they make it possible to profit from tax benefits of debt. And, like stocks, they provide protection...
Persistent link: https://www.econbiz.de/10013121124
We empirically investigate whether a bank's decision to recapitalize is influenced by the separation between voting and … cash-flow rights of the ultimate owner. We use a novel dataset on bank ultimate control and ownership structure of 442 … more pronounced if the ultimate owner is a family or a state, or if the bank is headquartered in a country with weak …
Persistent link: https://www.econbiz.de/10013105411
The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers …. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in … possible policy options and bank actions to enhance European bank funding models' robustness …
Persistent link: https://www.econbiz.de/10013085997
This paper empirically investigates whether a bank's decision to adjust its capital is influenced by the existence of a … bank is headquartered in a country with relatively weak shareholder protection. Moreover, this behavior is tempered during …
Persistent link: https://www.econbiz.de/10013090948
compensation structure for senior bank executives: Executive incentive compensation should only consist of restricted stock and … managers to enhance shareholder value as a bank's equity value approaches zero (as they did for the too-big-to-fail banks in …
Persistent link: https://www.econbiz.de/10013093758