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of collateral delinquency and lose value. Differences in bank sophistication, market power, or incentives to retain …
Persistent link: https://www.econbiz.de/10011293796
This paper provides evidence for regulatory arbitrage within the class of assetbacked securities (ABS) based on individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the securities with the highest yield and lowest collateral...
Persistent link: https://www.econbiz.de/10012988659
the Basel II agreement on the pro-cyclicality of bank lending and firms' access to funds during a recession. In response …
Persistent link: https://www.econbiz.de/10012988720
This paper analyzes the effect of the business cycle on the regulatory capital buffer of German savings and cooperative banks in the period 1993-2003. The capital buffer is found to fluctuate anticyclically over the business cycle. The fluctuation is stronger for savings banks than for...
Persistent link: https://www.econbiz.de/10012989323
Persistent link: https://www.econbiz.de/10012989332
This paper provides evidence for regulatory arbitrage within the class of asset-backed securities (ABS) based on individual asset holding data of German banks. I find that banks operating with tight regulatory constraints exploit the low risk-sensitivity of rating-contingent capital requirements...
Persistent link: https://www.econbiz.de/10013248849
-cyclicality of bank lending and firms' access to funds. In response to an exogenous shock to credit risk in the German economy …
Persistent link: https://www.econbiz.de/10013035268
This paper provides evidence for regulatory arbitrage within the class of asset-backed securities (ABS) based on individual asset holding data of German banks. I find that banks operating with tight regulatory constraints exploit the low risk-sensitivity of rating-contingent capital requirements...
Persistent link: https://www.econbiz.de/10011975264
increase to the minimum capital requirement of a firm's primary bank is associated with 3 percent less borrowing, relative to … firms not facing increased capital requirements to their primary bank. While firm borrowing is sensitive to capital … requirements of their primary bank, I find, on average, no material effect on firm's assets growth as firms are able to substitute …
Persistent link: https://www.econbiz.de/10013035174
on bank lending. We focus on aggregated macroprudential policy measures and on individual instruments and test whether … their effect on the association between lending and capital depends on bank size. Applying the GMM 2-step Blundell and Bond … of capital on bank lending during both crisis and non-crisis times. This result is stronger in large banks than in other …
Persistent link: https://www.econbiz.de/10012010272