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This is a chapter for a forthcoming volume Oxford Handbook of Financial Regulation (Oxford University Press 2014) (eds. Eilís Ferran, Niamh Moloney, and Jennifer Payne). It provides an overview of EU financial regulation from the first banking directive up until its most recent developments in...
Persistent link: https://www.econbiz.de/10010372581
The paper provides a baseline model for regulatory analysis of systemic liquidity shocks. We show that banks may have an incentive to invest excessively in illiquid long term projects. In the prevailing mixed strategy equilibrium the allocation is inferior from the investor's point of view since...
Persistent link: https://www.econbiz.de/10003951791
us to contribute to several ongoing debates between proponents and opponents of stricter bank regulation. We show that … aggregate risk increases. Our results, therefore, support the views of opponents of stricter bank regulation when aggregate risk … reduce or eliminate depositor subsidies to constrain bank leverage, our analysis also demonstrates that depositor subsidies …
Persistent link: https://www.econbiz.de/10014349741
make bank deposits endogenously long-term. Capital regulation addresses deposit dilution but is subject to a time … significantly impacts optimal bank capital regulation. We examine how capital regulation stringency changes across different …
Persistent link: https://www.econbiz.de/10014355377
, focusing on short-term gains but risking further losses if rates rose. Instead of hedging the market value risk of bank asset … fluctuations. More vulnerable banks were more likely to reclassify. Extending Jiang et al.'s (2023) solvency bank run model, we …
Persistent link: https://www.econbiz.de/10014512148
This paper contributes to the debate on the adequate regulatory treatment of non-bank financial intermediation (NBFI … example of credit funds as non-bank entities economically engaged in credit intermediation to illustrate the merits of the …
Persistent link: https://www.econbiz.de/10012668201
We study the relationship between banks' size and risk-taking in the context of supranational banking supervision. Consistently with theoretical work on banking unions and in contrast to analyses emphasising incentives under- pinned by the too-big-to-fail effect, we find an inverse relationship...
Persistent link: https://www.econbiz.de/10012627903
We investigate the effects of countercyclical prudential buffers on bank risk-taking. We exploit the introduction of …
Persistent link: https://www.econbiz.de/10012857307
a bank-level systemic risk indicator that can be decomposed into a bank's individual risk and its systemic linkage. To … proxy the strictness of a country's regulatory regime, we employ World Bank survey data …
Persistent link: https://www.econbiz.de/10012860144
causal effects of bank bailouts are considered …
Persistent link: https://www.econbiz.de/10012862020