Specialty Conference

|

Specialty Conference

|

Feb 2022

By a Silken Thread-Regional banking integration and pathways to financial development in Japan’s Great Recession

Mathias HOFFMANN, Toshihiro OKUBO
How do financial development and financial integration interact? We focus on Japan’s Great Recession after 1990 to study this question. Regional differences in banking integration affected how the recession spread across the country: financing frictions for credit-dependent firms were more severe ...
Keywords: financial development, financial integration, Japan, Great Recession, Lost Decade, banking integration, regional business cycles, transmission of financial shocks, misallocation of credit, trade credit, export finance, silk industry
  • View
  • Download
  • Bookmark
  •    |   

Specialty Conference

|

Specialty Conference

|

Jan 2017

Banks Credit and Productivity Growth

Fadi HASSAN, Filippo di MAURO, Gianmarco I. P. OTTAVIANO
Financial institutions are key to allocate capital to its most productive uses. In order to examine the relationship between productivity and bank credit in the context of different financial market set-ups, we introduce a model of overlapping generations of entrepreneurs under complete and incomple...
Keywords: Bank Credit, Capital Allocation, productivity, Credit Constraints
  • View
  • Download
  • Bookmark
  •    |   

Specialty Conference

|

Specialty Conference

|

Jan 2017

Credit Misallocation During the European Financial Crisis

Fabiano SCHIVARDI, Enrico SETTE, Guido TABELLINI
Using data on bank-firm relationships in Italy during the Eurozone financial crisis, we show that: (i) compared to healthy banks, under-capitalised banks cut credit to healthy but not to zombie firms and are more likely to prolong a credit relationship with a zombie; (ii) in area sectors with more l...
Keywords: bank capitalization, Zombie Lending, capital misallocation
  • View
  • Download
  • Bookmark
  •    |   

Specialty Conference

|

Specialty Conference

|

Jan 2017

A DSGE Model to Assess the Post Crisis Regulation of Universal Banks

Olivier de BANDT, Mohammed CHAHAD
The paper assesses the overall consistency and impact on both the financial sector and the real economy, of the numerous banking regulations that have been introduced in the aftermath of the Great Financial Crisis. For this purpose, we develop, within a multi-period asset framework, a large scale DS...
Keywords: Basel III, Solvency ratio, Liquidity ratios, Multi-period assets, Firms' heterogeneity
  • View
  • Download
  • Bookmark
  •    |   

Specialty Conference

|

Specialty Conference

|

Jan 2017

Financial sector origins of economic growth delusion

Frederic MALHERBE, Michael MCMAHON
After financial crises, GDP is typically persistently weak compared to pre-crisis trends. We build a simple competitive general equilibrium model to highlight role that the financial sector may have in boosting GDP to unsustainable, undesirable levels before financial crises. Allowing banks to freel...
Keywords: financial crises, GDP, trade, Loans, time-series
  • View
  • Download
  • Bookmark
  •    |