1,721,035 research outputs found
The Current Global Economic Turmoil: What Possible Policy Responses Need To Be Taken by Authorities in Strengthening Their Banking and Financial Markets
No full textA Comment on "Creating Incentives to Save among Microfinance Borrowers: A Behavioral Experiment from Guatemala"
No full textMarket response to bank relationships: Evidence from Korean bank reform
No full textThis paper examines how the forced closure of failing banks and the transfer of their loans to surviving banks affect the market value of firms that borrow from the closed banks. Pre-existing relationships between firms and the banks that acquire their loans are detrimental to the positive valuation effects of the event. Banks may have an incentive to favor pre-existing relationships to increase the value of previously extended loans. Therefore, loan renewals to firms with prior relationships do not signal borrower quality to the market, which is aware of the banks' conflicts of interest. This study highlights the importance of the specific mechanisms employed to replace failed banks without decreasing the value of their client firms. (C) 2010 Elsevier B.V. All rights reserved.1
Global Post-Crisis Banking Supervision: Supervisory Powers and Institutional Changes in the Banking Sector
Full text linkThis study utilizes new data across countries on bank supervision for the years 1999-2016 to examine the impact of supervisory powers and institutional changes in supervision. It examines key characteristics of the banking sector, such as banking sector fragility, bank stability, activity restrictions, capital regulation stringency, and banking supervision independence. We find that an increase in supervisory power, accompanied by a change in a central bank’s involvement in banking supervision, led to a decrease in banking sector fragility and an increase in the stability of banking sector. We also find that capital regulation stringency and the independence of banking supervisory authorities weakened in countries where an increase in supervisory power was accompanied by institutional changes in supervision following the global financial crisis. These results shed light on the importance of bank supervisory authorities and institutional changes in the soundness of the banking sectors
Are Financial Activities Harmful for Regional Growth? Some Contradictory Evidence from Indonesian Panel Data
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Regulatory Forbearance and Depositor Market Discipline: Evidence from Savings Banks in Korea
No full textThis paper investigates whether regulatory forbearance for savings banks in Korea affects the market discipline of depositors using data from 2000 to 2010, which are characterized by a series of exits of savings banks. We find that depositors' sensitivity to the savings banks' asset quality decreases when there is regulatory forbearance for failing savings banks. This forbearance effect is also observed in the behavior of the depositors of the neighboring savings banks in the same business area. These results suggest that regulatory forbearance may cause depositors to misjudge bank risks, increasing the expected costs of bank failure. (JEL G21, G28)1
The Effect of Bank Capital on Lending: Does Liquidity Matter?
No full textThis paper uses a sample of quarterly observations of insured US commercial banks to examine whether the effect of bank capital on lending differs depending upon the level of bank liquidity. We find that the effect of an increase in bank capital on credit growth, defined as growth rate of net loans and unused commitments, is positively associated with the level of bank liquidity only for large banks and that this positive relationship has been more substantial during the recent financial crisis period. This result suggests that bank capital exerts a significantly positive effect on lending only after large banks retain sufficient liquid assets. (C) 2017 Elsevier B.V. All rights reserved.1
Drug competition and voluntary exit
No full textWe use a duration model to find evidence that drug exit is exacerbated by generic competition. However, the impact on drug exit of competition with other branded drugs within a drug's therapeutic class is not statistically significant. (C) 2008 Elsevier B.V. All rights reserved.1
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