Why with such robust evidence are more policy makers not enthusiastic about DFS and why isn’t DFS more commonly integrated across other development interventions?
Credit line drawdowns from large firms have crowding out effects on lending to small firms. The main friction behind the reduction in loan supply by exposed banks was a rise in risk aversion.
Regulations might matter more in encouraging the use of financial services—rather than just their adoption. Consumer protections give people a degree of confidence that they can transact without…
Shadow banks are funded by the very banks they compete with in originating mortgages.
Firms with good green management practices, on the other hand, are more likely to invest in all types of green investment, with the effect larger for those more typically thought of as green.
Negative rates are effective in stimulating the economy when nominal interest rates hit the zero lower bound, via an increase in bank lending.
In the presence of binding financial regulations and opaque market structures, the bad bank model with little oversight on NPL transactions can incentivize banks to devise transactions to simply…
Regulatory policies reducing the need for asset (fire) sales by mutual funds have negative effects on liquidity supply to the underlying asset market.
The importance of CCPs in the post-crisis landscape became even more evident in the course of the March 2020 turmoil in global financial markets when CCPs called an unprecedented amount of margins…
While the bankruptcy rates of most firms are not affected by higher banking competition, high-leverage firms suffer much higher bankruptcy rates.