Bank capital and equity investment regulations
Article Abstract:
The power of bank incentives to motivate the risky behavior of a firm to which it supplies funds is lessened by a rise in the minimum required capital-asset ratio. Such case exists when the capital structure of a firm is affected by conditions, such as the presence of deposit insurance and regulations, under which the bank operates. A bank tends to utilize alternative contracts to finance a firm when a limit is set on one of the optimal financial instruments the bank uses to financially support the firm.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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The effect of bank monitoring on the investment behavior of Spanish firms
Article Abstract:
The prevalence of information problems in capital markets has been known to generate adverse effects on the performance of financial service firms, particularly banks. Analytical results derived from a sample of Spanish banking companies suggest that the neoclassical investment model remains feasible in evaluating the marketing potential of Spanish banks. Results further show that the use of asymmetrical information may mitigate information problems in the capital market.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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Estimation of rating class transition probabilities with incomplete data
Article Abstract:
A maximum likelihood estimation method of transition probabilities of external bond rates for internal rating data in German banks is proposed.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 2006
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