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I embed shadow banks in a quantitative general equilibrium model in which limited liability and deposit insurance can lead regulated banks to provide socially inefficient risky loans. Higher capital requirements can eliminate excessive risk at the cost of lower liquidity provision. In general...
Persistent link: https://www.econbiz.de/10013250536
Persistent link: https://www.econbiz.de/10011790739
We analyze the effect of bank capital requirements on the structure and risk of a financial system where markets, regulated banks, and shadow banks coexist. Banks face a moral hazard problem in screening entrepreneurs' projects, and they choose whether to be regulated or not. If regulated, a...
Persistent link: https://www.econbiz.de/10011975503
Volkswirtschaften am Rande des Währungsgebiets. Während die Vereinigten Staaten ein Finanzsystem haben, in dem sich Investoren und …
Persistent link: https://www.econbiz.de/10012051211
This paper researches into development of China’s shadow banking during 2020-2022, a special period marked by COVID-19 …-summarizes growth dynamics of China’s shadow banking in a “Pull-Push” framework, and proposes concept of reintermediation in respective … on relation of China’s shadow banking with macro-finance, and notes several empirical breakdowns of pre-COVID relations …
Persistent link: https://www.econbiz.de/10014352732
Using newly collected data this paper shows that Chinese shadow banking is different from the US counterpart in two important dimensions. The Chinese system creates information insensitive investment products by implicit guarantee rather than financial engineering and operates on a banking...
Persistent link: https://www.econbiz.de/10012858874
The Xi-Li administration faces the dual challenge of managing state capitalism and shadow banking as China enters a … phase of more moderate economic growth. During China's first three decades of reform, private sector development occurred in … enterprises, while private businesses relied primarily on informal finance. However, China's response to global financial crisis …
Persistent link: https://www.econbiz.de/10013022517
-financial economy and concludes that banking models in China and Russia are different. Since the time of that publication, the Russian … non-banking financial institutions. Our main hypothesis is that the institutional models of banking in China and Russia … coherence grows, not least via institutional imports from China to Russia …
Persistent link: https://www.econbiz.de/10012904793
China's shadow banking has been rising rapidly in the last decade, mainly driven by regulations for banks, the Fiscal … high demand for funding. The standard view is that it poses risks to financial stability. However, in China this is not …
Persistent link: https://www.econbiz.de/10012833663
detailed micro-level data set on wealth management products, which are the most prominent shadow banking products in China. We …
Persistent link: https://www.econbiz.de/10012849094