Does the Market Discipline Banks? New Evidence from
... issued largely by Bank Holding Companies. The authors found that spreads are sensitive to measures of leverage, accruing loans past due, and real estate holdings of the holding company, but that this relationship is strongest with more recent data. These findings were largely confirmed by DeYoun ...
... issued largely by Bank Holding Companies. The authors found that spreads are sensitive to measures of leverage, accruing loans past due, and real estate holdings of the holding company, but that this relationship is strongest with more recent data. These findings were largely confirmed by DeYoun ...
Revisions to the Basel III leverage ratio framework, issued by the
... order to pursuit higher return. It means that risk sensitivity which the BCBS recognises as an important element of the regulatory framework would be lost. Currently, however, the leverage ratio has become more binding than the risk-based capital ratio for many banks and more than a “backstop” measu ...
... order to pursuit higher return. It means that risk sensitivity which the BCBS recognises as an important element of the regulatory framework would be lost. Currently, however, the leverage ratio has become more binding than the risk-based capital ratio for many banks and more than a “backstop” measu ...
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... interval was applied during the whole available period, while the average inflation was about 8 per cent annually. However, the majority of the reported entities have total sales in the lower range of the spectrum. Following the general practice of the financial institutions, we define defaults if a ...
... interval was applied during the whole available period, while the average inflation was about 8 per cent annually. However, the majority of the reported entities have total sales in the lower range of the spectrum. Following the general practice of the financial institutions, we define defaults if a ...
Dollar Funding and the Lending Behavior of
... lack of insurance in the U.S. market does not have a material impact on its dollar funding costs. Now suppose that there is an adverse shock to the bank’s perceived creditworthiness. Given the wholesale nature of its dollar liabilities (i.e., the lack of insurance), this leads to a spike in its doll ...
... lack of insurance in the U.S. market does not have a material impact on its dollar funding costs. Now suppose that there is an adverse shock to the bank’s perceived creditworthiness. Given the wholesale nature of its dollar liabilities (i.e., the lack of insurance), this leads to a spike in its doll ...
How Do Insured Deposits Affect Bank Risk?
... studies to examine how the existence of explicit deposit insurance affects the stability of a country’s banking system. For example, Demirgüç-Kunt and Detragiache (2002) show for a sample of 61 countries around the world that during the 1980s and 1990s the existence of deposit insurance had an adv ...
... studies to examine how the existence of explicit deposit insurance affects the stability of a country’s banking system. For example, Demirgüç-Kunt and Detragiache (2002) show for a sample of 61 countries around the world that during the 1980s and 1990s the existence of deposit insurance had an adv ...
BANKING AND THE SOCIAL CONTRACT
... This Article asserts that there are three major tenets of the social contract: (1) safety and soundness, (2) consumer protection, and (3) access to credit. Regulators can and should require banks to meet standards in these areas to benefit society even if these measures reasonably reduce bank profit ...
... This Article asserts that there are three major tenets of the social contract: (1) safety and soundness, (2) consumer protection, and (3) access to credit. Regulators can and should require banks to meet standards in these areas to benefit society even if these measures reasonably reduce bank profit ...
The Determinants of Bank Capital Ratios in a Developing Economy
... ratio (CAR). In 1996, Malaysia again followed the Basel Committee’s recommendation and incorporated market risk into its CAR calculation. Then in 1999, it raised its capital adequacy requirement from 8% to 10%. The minimum capital funds for domestic banks were raised to RM 2 billion (US$ 605 million ...
... ratio (CAR). In 1996, Malaysia again followed the Basel Committee’s recommendation and incorporated market risk into its CAR calculation. Then in 1999, it raised its capital adequacy requirement from 8% to 10%. The minimum capital funds for domestic banks were raised to RM 2 billion (US$ 605 million ...
Evidence from the 2008 emergency economic stabilization act
... studies to examine how the existence of explicit deposit insurance affects the stability of a country’s banking system. For example, Demirgüç-Kunt and Detragiache (2002) show for a sample of 61 countries around the world that during the 1980s and 1990s the existence of deposit insurance had an adv ...
... studies to examine how the existence of explicit deposit insurance affects the stability of a country’s banking system. For example, Demirgüç-Kunt and Detragiache (2002) show for a sample of 61 countries around the world that during the 1980s and 1990s the existence of deposit insurance had an adv ...
O Countercyclical Capital Regulation: Should Bank Regulators Use Rules or
... of providing credit, liquidity, and payments services may require them to favor deposits and hold less equity than nonfinancial firms (Diamond; Gorton and Pennacchi; Kashyap and others).4 Banks also have an incentive to hold less equity because their deposits are at least partly insured, and the dep ...
... of providing credit, liquidity, and payments services may require them to favor deposits and hold less equity than nonfinancial firms (Diamond; Gorton and Pennacchi; Kashyap and others).4 Banks also have an incentive to hold less equity because their deposits are at least partly insured, and the dep ...
Minsky at Basel: how to build an effective banking
... “For the WTO, the international transactions on goods and services increased 11 times from 1977 to 2007. During the same years financial transactions in foreign exchange markets grew at a much higher rate than international trade. They increased 175 times if we only include traditional products and ...
... “For the WTO, the international transactions on goods and services increased 11 times from 1977 to 2007. During the same years financial transactions in foreign exchange markets grew at a much higher rate than international trade. They increased 175 times if we only include traditional products and ...
Re-building and Recovery - RBS: Investor relations
... provided by the APS; and the Group’s potential exposures to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity and equity price risk. Such statements are subject to risks and uncertainties. For example, certain of the market risk disclosures are depen ...
... provided by the APS; and the Group’s potential exposures to various types of market risks, such as interest rate risk, foreign exchange rate risk and commodity and equity price risk. Such statements are subject to risks and uncertainties. For example, certain of the market risk disclosures are depen ...
How do insured deposits affect bank stability
... been explored by the literature, such as the effect of bank CEO incentives (Fahlenbrach and Stulz, 2011) and government bailout policies on banks’ risk taking (Gropp et al., 2011; Dam and Koetter, 2012; Black and Hazelwood, 2012). This paper explores how a bank’s amount of insured deposits affects its ...
... been explored by the literature, such as the effect of bank CEO incentives (Fahlenbrach and Stulz, 2011) and government bailout policies on banks’ risk taking (Gropp et al., 2011; Dam and Koetter, 2012; Black and Hazelwood, 2012). This paper explores how a bank’s amount of insured deposits affects its ...
May 2003 - Banco de España
... growth of risk-weighted assets also moderated considerably. The statistical fund, as a percentage of credit to the private sector, continued to increase, although at more moderate rates than in the previous year. This fund helps to reinforce the soundness and stability of the Spanish banking system ...
... growth of risk-weighted assets also moderated considerably. The statistical fund, as a percentage of credit to the private sector, continued to increase, although at more moderate rates than in the previous year. This fund helps to reinforce the soundness and stability of the Spanish banking system ...
The Impact of Regulation on Financial Services Industry Groups
... Along with banks’ investment decisions, many economists have blamed central bankers and governmental policy makers for encouraging consolidation and conglomeration within the financial services industry over the past two decades, thus serving as catalysts to this crisis. Following the 1999 Financia ...
... Along with banks’ investment decisions, many economists have blamed central bankers and governmental policy makers for encouraging consolidation and conglomeration within the financial services industry over the past two decades, thus serving as catalysts to this crisis. Following the 1999 Financia ...
THE IMPACT OF OIL PRICE ON BANK PROFITABILITY IN CANADA
... the bank profitability. Zhang & Dong (2011) find that although higher number in loan-to-assets ratio will bring more credit risk to the banks for insufficient liquidity, the positive effect of lending specialization outperform the negative effect. Previous research studies of the impact of capital h ...
... the bank profitability. Zhang & Dong (2011) find that although higher number in loan-to-assets ratio will bring more credit risk to the banks for insufficient liquidity, the positive effect of lending specialization outperform the negative effect. Previous research studies of the impact of capital h ...
FCIC Roundtable - October 20 2009 (4)_1
... bond insurers (which had previously concentrated on insuring municipal bonds) sold protection insurance to CDO investors that would pay off in the event that loans went into default. In other cases, especially more recently, insurance companies, investment banks and other parties did the near equiva ...
... bond insurers (which had previously concentrated on insuring municipal bonds) sold protection insurance to CDO investors that would pay off in the event that loans went into default. In other cases, especially more recently, insurance companies, investment banks and other parties did the near equiva ...
APRA Insight Issue 2 2012 - Australian Prudential Regulation Authority
... global financial crisis. A key risk in this area is that, given low credit growth and a competitive retail banking environment, ADIs seek to gain or maintain market share by relaxing underwriting standards. The gradual improvement in credit quality is reflected in several metrics. Non-performing loa ...
... global financial crisis. A key risk in this area is that, given low credit growth and a competitive retail banking environment, ADIs seek to gain or maintain market share by relaxing underwriting standards. The gradual improvement in credit quality is reflected in several metrics. Non-performing loa ...
Better banks for Eastern Europe
... new credits to cover the interest due [see, e.g., Brainard, 1991, p. 97]. At the same time, more promising potential borrowers suffer from a dearth of funds. As a consequence, banks carry a heavy burden of non-performing loans granted to state enterprises. Some of these bad loans are a legacy from t ...
... new credits to cover the interest due [see, e.g., Brainard, 1991, p. 97]. At the same time, more promising potential borrowers suffer from a dearth of funds. As a consequence, banks carry a heavy burden of non-performing loans granted to state enterprises. Some of these bad loans are a legacy from t ...
Bank of America 4Q16 Financial Results
... Tangible common shareholders' equity 3 Tangible common equity ratio 3 ...
... Tangible common shareholders' equity 3 Tangible common equity ratio 3 ...
Why does Brazil’s banking sector need public banks?
... “[a]t present, flaws in credit allocation by deregulated private banks and difficulties in reestablishing the supply of credit for the real sector in developed economies (despite expansionary monetary policies) have led to a renewed interest in credit policies. For instance, in July 2012 the Bank of ...
... “[a]t present, flaws in credit allocation by deregulated private banks and difficulties in reestablishing the supply of credit for the real sector in developed economies (despite expansionary monetary policies) have led to a renewed interest in credit policies. For instance, in July 2012 the Bank of ...
Will crowdfunding contribute to financial development in developing
... Many borrowers turning to the crowd for funding are rejected. Success rates are in the range between low single digits to upward of 40% (Mach 2014, Massolution 2015). Much depends on early contributions, as funding propensity increases with accumulated capital indicating herding behavior by investo ...
... Many borrowers turning to the crowd for funding are rejected. Success rates are in the range between low single digits to upward of 40% (Mach 2014, Massolution 2015). Much depends on early contributions, as funding propensity increases with accumulated capital indicating herding behavior by investo ...
New requirements for loss absorbing capacity: TLAC and MREL
... be resolvable, ii)- critical functions can be continued without taxpayer (public) funding and avoiding adverse effects on the financial system. ...
... be resolvable, ii)- critical functions can be continued without taxpayer (public) funding and avoiding adverse effects on the financial system. ...
Bank Capital Requirements - Wisconsin-School-of
... they do not engage in risk-shifting otherwise. The main instrument used by regulators to restrict bank risk-shifting incentive is minimum capital requirements, and there are many theoretical studies on the effectiveness of this instrument. For example, Hellmann, Murdock, and Stiglitz (2000), Repullo ...
... they do not engage in risk-shifting otherwise. The main instrument used by regulators to restrict bank risk-shifting incentive is minimum capital requirements, and there are many theoretical studies on the effectiveness of this instrument. For example, Hellmann, Murdock, and Stiglitz (2000), Repullo ...
Supporting UK business - Better Business Finance
... turning down loan requests for viable businesses. On the other hand, over this same period, the banks have seen a steady decline in demand for loans and a steep increase in the cost of wholesale funding, upon which much of their lending depends. Securitisation markets remain subdued, with knock-on c ...
... turning down loan requests for viable businesses. On the other hand, over this same period, the banks have seen a steady decline in demand for loans and a steep increase in the cost of wholesale funding, upon which much of their lending depends. Securitisation markets remain subdued, with knock-on c ...
Pricing Financing in Islamic banking
... As such, the profit-sharing depositors of Islamic banking institutions only know their actual returns at the maturity of the deposits. These returns are subject to the profits accrued from investment and financing that are shared between the banks and the depositors. The banks assume the role as ent ...
... As such, the profit-sharing depositors of Islamic banking institutions only know their actual returns at the maturity of the deposits. These returns are subject to the profits accrued from investment and financing that are shared between the banks and the depositors. The banks assume the role as ent ...
Bank
A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.