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Do Bank Bailouts Reduce or Increase Systemic Risk? The Effects of TARP on Financial System Stability

open access: yes, 2016
Theory suggests that bank bailouts may either reduce or increase systemic risk. This paper is the first to address this issue empirically, analyzing the U.S. Troubled Assets Relief Program (TARP).
Allen N. Berger, Raluca A. Roman
semanticscholar   +1 more source
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When Losses Turn into Loans: The Cost of Weak Banks

The American Economic Review, 2023
We provide evidence that banks distort the composition of credit supply in order to comply with ratio-based capital requirements in times of economic distress.
Laura Blattner   +2 more
semanticscholar   +1 more source

SOEs and Soft Incentive Constraints in State Bank Lending

American Economic Journal: Economic Policy, 2023
We study how Chinese state bank managers’ lending incentives impact lending to state-owned enterprises (SOEs). We show lending quantity increases and quality decreases at month’s end, indicating monthly lending targets that decrease lending standards ...

semanticscholar   +1 more source

How to Use Natural Experiments to Estimate Misallocation

The American Economic Review, 2023
We propose a method to estimate the effect of firm policies (e.g., bankruptcy laws) on allocative efficiency using (quasi-)experimental evidence. Our approach takes general equilibrium effects into account and requires neither a structural estimation nor
David Sraer, D. Thesmar
semanticscholar   +1 more source

Whatever it Takes? The Impact of Conditional Policy Promises

Social Science Research Network, 2023
At the announcement of a new policy, agents form a view of state-contingent policy actions and impact. We develop a method to estimate this state-contingent perception and implement it for many asset-purchase interventions worldwide.
Valentin Haddad   +2 more
semanticscholar   +1 more source

Current Expected Credit Losses (CECL) Standard and Banks' Information Production

Social Science Research Network
We examine whether the adoption of the current expected credit losses (CECL) model, which incorporates forward-looking information in loan loss provisions (LLPs), enhances banks’ information production. Consistent with better information production, we
Sehwa Kim   +3 more
semanticscholar   +1 more source

COVID-19 and Corporate Finance

Social Science Research Network, 2022
We distill evidence about the effects of COVID-19 on companies. Stock price reactions to the shock differed greatly across firms, depending on their resilience to social distancing, financial flexibility, and corporate culture. The same characteristics
M. Pagano, J. Zechner
semanticscholar   +1 more source

WP/16/98 Macroprudential Policy and Financial Stability in the Arab Region

Social Science Research Network
Several characteristics of the structure of the Arab economies, their economic policy framework, and their banking systems make macroprudential policy a particular relevant tool.
Heba Ali, Heba Abdel Monem
semanticscholar   +1 more source

Expected Losses, Unexpected Costs? Evidence from SME Credit Access under IFRS 9

Accounting Review
This paper examines lending effects of European banks switching to an expected credit loss (ECL) model under IFRS 9. I find evidence that ECL transition deteriorates the credit landscape for SMEs—as risky, opaque, and bank-dependent borrowers. Post-ECL,
Aytekin Ertan
semanticscholar   +1 more source

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