| 1. |
- Lindblom, Ted, 1956, et al.
(author)
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Financial crisis and bank profitability
- 2010
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In: Wolpertinger Conference 2010, European Association of University Teacher of Banking and Finance, Sept 8-12, Bangor, Wales.
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Conference paper (other academic/artistic)
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| 2. |
- Lindblom, Ted, 1956, et al.
(author)
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Financial Crisis and Bank Profitability
- 2011
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In: Bank Performance, Risk and Firm Financing. - Houndmills, Basingstoke, Hampshire UK : Palgrave Macmillan. - 9780230313354 ; , s. 83-105
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Book chapter (other academic/artistic)abstract
- This paper examines the impact of the financial crisis on the profitability of Swedish banks. At the beginning of the crisis many banks experienced liquidity problems due to a mismatch in their funding of loans. Aside ordinary savings deposits these banks had for a number of years been financing long-term (mortgage) lending with short-term borrowing on the market. Without resolute interventions by the Government, issuing general banking guarantees, and the Central bank, fuelling the market with liquidity to ever lower interest rates, the financial system might have collapsed totally. This moved the focus from liquidity risk to credit risk. A major concern for bigger commercial banks also operating internationally has been how to manage anticipated and increasingly realized credit losses on the Baltic markets. It seems as their loan loss provisions to a great extent have been covered by greater interest rate margins on the Swedish market. Whether wider margins are motivated by a larger risk exposure of the banks or/ and mainly explained by weaker competition on the financial market is not fully clear. This issue is explored more in depth in this study. Particular emphasis is put on whether there are differences between banks and between different regions (sub-markets). Conducted (econometrical) analyses are based on financial data on an annual but to some extent also a quarterly basis.
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| 3. |
- Lindblom, Ted, et al.
(author)
-
Financial Crisis and Bank Profitability
- 2011
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In: Bank Performance, Risk and Firm Financing. - : Palgrave Macmillan. - 9780230313354 ; , s. 83-106
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Book chapter (peer-reviewed)
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| 4. |
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| 5. |
- Lindblom, Ted, et al.
(author)
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Operational Risk under the Basel II Capital Adequacy Framework
- 2008
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Conference paper (peer-reviewed)abstract
- The Basel II capital adequacy framework constitutes a very comprehensive regulatory approach to risk assessment in banks. It is far more detailed and sophisticated than the first Basel accord. A special feature is that the new accord is not only targeting banks‘ financial risk exposures in terms of credit risks and market risks. The scope has been widened to also explicitly incorporate banks‘ exposure to operational risks in the capital adequacy requirement. For banks this novelty means a major change. Unless they choose to use the highly unsophisticated ‗basic indicator approach‘ or the ‗standardized approach‘ proposed in the new Basel accord, it will put significant pressure on them to develop and design appropriate internal risk information models and systems. In this paper we explore banks‘ operational risk assessment under Basel II in Sweden, where all banks—regardless of size—have to comply with the new regulatory framework. The overall aim is to provide deeper insights into the capability of banks to identify and measure exposures to operational risk and their choice of method for calculating regulatory capital against such exposures.
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| 6. |
- Baros, Aleksandra, et al.
(author)
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Bank liquidity and capital shocks in unconventional times
- 2023
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In: European Journal of Finance. - : Taylor & Francis Group. - 1351-847X .- 1466-4364. ; 29:14, s. 1678-1703
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Journal article (peer-reviewed)abstract
- This paper examines bank liquidity management following capital shocks under capital and liquidity regulation in a period of unconventional monetary policies. Studying European banks between 2010 and 2018, we find that bank liquidity is generally not affected by a negative capital shock. Capital shocks are nevertheless transmitted into liquidity positions through balance sheet adjustments. Addressing bank-level balance sheet policies, we find that the banks de-risk assets by replacing corporate loans with financial securities, especially if the shock takes place during periods of heightened central bank interventions. Moreover, asset-side-dominant risk-reducing behavior goes against regulatory intent and indicates that regulatory arbitrage considerations affect banks’ responses to shocks. Finally, we document heterogeneous responses by banks depending on their size, type, and country. These findings imply that compliance with regulation may lead to partial shortages in corporate lending, with banks prioritizing investment in government securities in event of a capital shock.
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| 7. |
- Elliot, Viktor, et al.
(author)
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Does bank regulation spill over to firm financing? : SME financing, bank monitoring, and the efficiency of the bank lending channel
- 2018
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In: Contemporary issues in banking. - Basingstoke : Palgrave Macmillan. - 9783319902944 - 9783319902937 ; , s. 279-302
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Book chapter (peer-reviewed)abstract
- This chapter analyses spill over between banks and firms when required bank capital is regulated. We contribute to the existing literature by addressing different regulatory responses with an impact on the supply and demand of bank lending. The chapter contributes to the growing literature addressing the unintended consequences of regulatory policy development. The study empirically compares the regulatory responses of Swedish banks and how these responses affect lending to Swedish SMEs. The theoretical framework and methodology employed in this chapter make it possible to study theories related to bank monitoring, regulatory arbitrage opportunities, and the risk-return trade off. The main results indicate that banks’ regulatory responses are associated with increasing lending margins, either by (1) increasing the margin on the loan portfolios, spilling over the regulatory costs through higher prices, (2) lower acceptance of lower return customers, or (3) regulatory arbitrage through balance sheet adjustments.
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| 8. |
- Elliot, Viktor, et al.
(author)
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Does bank regulation spill-over to firm financing? SME financing, bank monitoring and the efficiency of the bank lending channel
- 2017
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In: 2017 Wolpertinger Conference, 31 August - 2 September, Santander.
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Conference paper (other academic/artistic)abstract
- This paper analyses spill over between banks and firms when capital is regulated. The current empirical findings and theories observe effects (positive or negative) mainly on SME’s. We contribute to the existing literature by combining determinants of demand and supply of bank credits with respect to both bank and firm options of alternative, or no funding. The study empirically compares Swedish banks and Swedish SME funding with respect to capital regulation in banking. This makes it possible to simultaneously study theories regarding bank monitoring, competition and regulatory arbitrage opportunities with respect to regulations. The main results indicate that there are no effects to the volume of loans from banks, but a significant impact on the loan prices, which we can explain by racing for yield and regulatory arbitrages by the banks.
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| 9. |
- Elliot, Viktor, et al.
(author)
-
Does bank regulation spill-over to firm financing? SME financing, bank monitoring and the efficiency of the bank lending channel.
- 2018
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In: Contemporary Issues in Banking: Regulation, Governance and Performance. - Basingstoke : Palgrave Macmillan. - 2523-336X. - 9783319902937 ; , s. 279-302
-
Book chapter (peer-reviewed)abstract
- This chapter analyses spill over between banks and firms when required bank capital is regulated. We contribute to the existing literature by addressing different regulatory responses with an impact on the supply and demand of bank lending. The chapter contributes to the growing literature addressing the unintended consequences of regulatory policy development. The study empirically compares the regulatory responses of Swedish banks and how these responses affect lending to Swedish SMEs. The theoretical framework and methodology employed in this chapter make it possible to study theories related to bank monitoring, regulatory arbitrage opportunities, and the risk-return trade off. The main results indicate that banks’ regulatory responses are associated with increasing lending margins, either by (1) increasing the margin on the loan portfolios, spilling over the regulatory costs through higher prices, (2) lower acceptance of lower return customers, or (3) regulatory arbitrage through balance sheet adjustments.
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| 10. |
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