منابع مشابه
Does Interbank Borrowing Reduce Bank Risk?
In this paper we investigate whether banks that borrow from other banks have lower risk levels. We concentrate on a large sample of Central and Eastern European banks which allows us to explore the impact of interbank lending when exposures are long-term and interbank borrowers are small banks. The results of the empirical analysis generally confirm the hypothesis that long-term interbank expos...
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Probably, one test of the stability of the banking system is to evaluate how risky assets are distributed across banks’ portfolios and the implications for the contagion via interbank relations. This paper explores theoretically a bank sector with risks concentration and the functioning of interbank markets. It employs a simple model where banks are exposed to both credit and liquidity risk tha...
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We study the interaction between interbank competition and accounting information quality and their effects on banks’ risk-taking behavior. We identify an endogenous false-alarm cost that banks incur when forced to sell assets to meet capital requirements. We find that when the interbank competition is less intense, an improvement in the quality of accounting information encourages banks to tak...
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The Federal Reserve’s new primary credit facility offers guilt-free overnight loans to commercial banks at a rate of 100 basis points over the target federal funds rate. If utilized freely by the market, the facility places an upper bound on the rates at which financial institutions lend to one another overnight, reducing the volatility of the daily effective federal funds rate. Conceivably, ho...
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The recent LIBOR scandals have demonstrated that the panel banks did not report in good faith, leading some to question whether LIBOR was ever accurate. This article derives the equilibrium LIBOR reporting strategy and quantifies the LIBOR bias. It finds that the current trimming mechanism cannot prevent LIBOR rigging, although the LIBOR gets less biased when the cross-sectional dispersion of t...
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ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2009
ISSN: 0022-2879,1538-4616
DOI: 10.1111/j.1538-4616.2009.00217.x