A Theory of the Boundaries of Banks With Implications for Financial Integration and Regulation
Financial Management, EarlyView.ABSTRACT We offer a theory of the “boundary of the firm” that is tailored to banks, recognizing the relevance of deposit financing and interbank lending as a substitute for integration. It is based on a single inefficiency that has been at the core of banking theory: risk‐shifting incentives in the interest of bank shareholders.
Falko Fecht +2 more
wiley +1 more source
The determinants of sovereign risk premiums in the UK and the European government bond market: the impact of Brexit. [PDF]
Int Econ Econ Policy, 2022 Kadiric S.
europepmc +1 more source
Credit risk tools: an overview [PDF]
This document presents several Credit Risk tools which have been developed for the Credit Derivatives Risk Management. The models used in this context are suitable for the pricing, sensitivity/scenario analysis and the derivation of risk measures for ...
Esposito, Francesco Paolo
core +1 more source
Financial Statement Readability and Firm Debt Choice
Financial Management, EarlyView.ABSTRACT Examining more than 16,000 firm‐year observations in the United States, we provide novel evidence showing that higher financial statement readability leads to a decrease in information asymmetry and the need for external monitoring, thereby reducing the reliance on bank debt relative to public debt.
Wajih Abbassi +3 more
wiley +1 more source
Modeling Fuzzy Moral Hazard in Credit Default Swap Pricing: A Reduced-Form Approach
International Journal of Computational Intelligence SystemsIn existing literature, moral hazard is often modeled as a constant. However, moral hazard can be “fuzzy” rather than “precisely defined.” As moral hazard is dynamic and variable, exhibiting both constancy and differentiation, its representation through ...
Liang Wu, Hongtao Hua
doaj +1 more source
Credit derivatives: an overview [PDF]
Arising from financial institutions' need to hedge and diversify credit risk, credit derivatives have now become a major investment tool. Almost all credit derivatives take the form of the credit default swap, which transfers default risk from one party ...
David Mengle
core
Bank Capital and Misconduct Incentives
Journal of Economics &Management Strategy, EarlyView.ABSTRACT This paper studies large banks' incentives to engage in misconduct by abusing their dominant position in the market for loans and by mis‐selling an add‐on financial product to depositors. We draw new connections between stability‐focused prudential regulation and misconduct by studying the impact of higher capital requirements on misconduct ...
Jacob Seifert
wiley +1 more source
The combination of Hebbian and predictive plasticity learns invariant object representations in deep sensory networks. [PDF]
Nat Neurosci, 2023 Halvagal MS, Zenke F.
europepmc +1 more source
The Relationship between Credit Default Swaps and Net Portfolio Investments: The Case of Turkey [PDF]
, 2021 Mehmet Nar
openalex +1 more source
An empirical study on the decoupling movements between corporate bond and CDS spreads [PDF]
Applied to the European markets, this paper analyzes the price of credit risk on the Credit Default Swap (CDS) and corporate bond markets by comparing the sensitivity of the credit spreads on each market to systematic, idiosyncratic risk factors and ...
Alexopoulou, Ioana +2 more
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