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Using regulatory data from financial institutions on fraud-related losses in foreign markets, we find large differences in recovery rates across countries. Specifically, losses in countries with poor governance have lower recoveries. Such results are driven by dimensions such as control of...
Persistent link: https://www.econbiz.de/10013492123
We construct a new systemic risk measure that quantifies vulnerability to fire-sale spillovers using detailed regulatory balance sheet data for U.S. commercial banks and repo market data for broker-dealers. Even for moderate shocks in normal times, fire-sale externalities can be substantial. For...
Persistent link: https://www.econbiz.de/10010202672
the frequency and magnitude of operational risk events in U. S. bank holding companies have increased significantly with … their complexity by the Bank for International Settlements and the Federal Reserve …
Persistent link: https://www.econbiz.de/10012978703
Bank Holding Companies (BHCs) have been diversifying their businesses increasingly among banking, securities and … formation of financial holding companies after the Gramm–Leach–Bliley Act (GLBA, 1999). This study examines whether BHC …
Persistent link: https://www.econbiz.de/10013006304
This paper examines the role of bank capital in decision-making by bank holding companies (BHCs) in the United States …. Following Chami and Cosimano's (2001) call option approach to bank capital, BHCs optimally choose the amount of capital to … insure the bank against becoming capital constrained in the future. We provide empirical support for this model, and find …
Persistent link: https://www.econbiz.de/10013024436
The recent financial crisis highlighted the role of Bank Holding Companies (BHCs) in exacerbating the crisis and in … monetary policy and market innovations on bank behavior in the presence of Basel III type regulations. To our knowledge, this … trading business, and show that regulations that target bank governance can mitigate possible rogue trading and the over …
Persistent link: https://www.econbiz.de/10012950372
Persistent link: https://www.econbiz.de/10009504773
matter whether it is organized as part of a universal bank or in a separate institution. Next, the paper shows that relative …
Persistent link: https://www.econbiz.de/10011435830
Many large U.S. bank holding companies (BHCs) continued to pay dividends during the recent financial crisis, even as …
Persistent link: https://www.econbiz.de/10010393223
subsidiaries. We suggest improvements in governance as well greater disclosure of related party transactions in bank holding …In this paper we study the intra-group transactions between the parent bank and its foreign subsidiaries in European … subsidiary banks were large by assets in some of the member states the related party transactions with the parent bank created a …
Persistent link: https://www.econbiz.de/10013127836