Tag Archives: Banking

Loan evergreening: does it “save” firms?

I have written about my paper on loan evergreening in Uruguay in a couple of previous posts (here and here). A paper that is coming soon, by the way. The strategy we study—providing a bullet loan to repay an existing … Continue reading

Posted in Uncategorized | Tagged , | Leave a comment

Loan evergreening: the role of bank solvency

In a previous post, I discussed how a couple of economists at the Banco Central del Uruguay and I are identifying instances of loan evergreening—when banks provide additional credit so that firms repay their previous loans—using very granular data. The … Continue reading

Posted in Uncategorized | Tagged , | 1 Comment

Loan evergreening

Loan evergreening is a situation where banks provide loans to firms in order to ensure that firms keep repaying the existing (previous) loans. It is a concept related to zombie lending, broadly defined as lending to non-viable firms. Loan evergreening … Continue reading

Posted in Uncategorized | Tagged , | 2 Comments

Arbitrage in SME lending

One of the big concerns of the aftermath of the Covid-19 crisis is that the recovery might take much longer because many firms, particularly small and medium (SMEs), will have closed down for good. From the very beginning, different actions … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Limiting borrowers leverage

In the last post I talked about the countercyclical capital buffer (CCyB), a new regulatory tool to increase banks’ capital requirements that most countries have not used but that could have been effective to mitigate the Covid-19 crisis. As I … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Countercyclical capital buffers and regulatory discretion

One of the main regulations that banks have to comply with are capital requirements; in particular, banks need to hold a minimum amount of capital depending on the composition of their investments (assets). Actually, the use of the word “hold”, … Continue reading

Posted in Uncategorized | Tagged , , | 1 Comment

Economics of voluntary information sharing

Almost a month ago now I attended the wonderful 3rd Bristol Workshop in Banking and Financial Intermediation at the University of Bristol. I was there to act as discussant of a paper titled Economics of voluntary information sharing, presented by … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

6th Emerging scholars conference – more papers

Continuing my brief summaries of some of the papers presented in the December’18 Emerging scholars conference (see the first one), I bring a paper on how capital regulation affects the repo market by Antonis Kotidis and Neeltje van Horen. I … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Danske Bank and HSBC

We have learned today that Danske Bank is being charged for its money laundering scandal. It seems that its branch in Estonia (the only one there) handled around €200bn of Russian and other ex-Soviet money—apparently a large part of it … Continue reading

Posted in Uncategorized | Tagged | Leave a comment

Client clearing

When Lehman went bankrupt, it had over 900,000 derivative transactions with other counterparties. While many of these transactions were closed down in the following weeks, a significant number of bilateral over-the-counter derivatives were the object of dispute for months, even … Continue reading

Posted in Uncategorized | Tagged , | 2 Comments