Long-Term Bank Funding Cost: Does Sovereign Matter?

2013 ◽  
Author(s):  
Andrea Zaghini
Keyword(s):  
Bank Funding ◽  
Funding Cost

Recent Trends in Long-Term Bank Funding

2012 ◽  
Author(s):  
Andrea Cardillo ◽  
Andrea Zaghini
Keyword(s):  
Bank Funding ◽  
Recent Trends

A New Indicator of Bank Funding Cost

2020 ◽  
Author(s):  
Eric Jondeau ◽  
Benoît Mojon ◽  
Jean-Guillaume Sahuc
Keyword(s):  
Bank Funding ◽  
Funding Cost

Sovereign credit ratings and bank funding cost: Evidence from Africa

2017 ◽  
Vol 42 ◽  
pp. 887-899 ◽  
Author(s):  
Mary Opoku Mensah ◽  
Elikplimi Komla Agbloyor ◽  
Simon Kwadzogah Harvey ◽  
Vera Ogeh Fiador
Keyword(s):  
Credit Ratings ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings ◽  
Bank Funding ◽  
Funding Cost

scholarly journals The Basel III net stable funding ratio and a risk-return tradeoff: Bank-level evidence from Vietnam.

2021 ◽  
Vol 17 (2) ◽  
pp. 247-274
Author(s):  
Van Dan Dang
Keyword(s):  
Policy Framework ◽  
Basel Iii ◽  
Bank Profitability ◽  
Risk Return ◽  
Credit Risks ◽  
Alternative Measures ◽  
Potential Benefits ◽  
Bank Funding ◽  
The Impact

The Net Stable Funding Ratio (NSFR) liquidity rule under Basel III guidelines is designed to handle long-term liquidity risk, promoting the sustainable structures of bank funding. This study estimates the NSFR and analyses the impact of this liquidity ratio on banks according to a risk-return trade-off in Vietnam prior to the Basel III implementation. Using yearly data for commercial banks from 2007 to 2018, I find that banks with higher NSFR gain more potential benefits than banks with lower NSFR. Concretely, a rise in NSFR increases bank profitability and decreases bank funding costs, credit risks and liquidity creation, as evidenced by a comprehensive set of alternative measures. The findings of this study offer insightful implications on the bank policy framework advocating the Basel III liquidity regulation in Vietnam as well as other emerging markets.

scholarly journals The Role of Governance and Bank Funding in the Determination of Cornerstone Allocations in Chinese Equity Offers

2019 ◽  
Vol 12 (3) ◽  
pp. 114 ◽  
Author(s):  
Paul B. McGuinness
Keyword(s):  
Initial Public Offerings ◽  
Political Connections ◽  
Material Incentive ◽  
Family Resources ◽  
Public Offerings ◽  
Women On Boards ◽  
Bank Funding

This article investigates the causal factors underlying cornerstone investor (CI) participation in initial public offerings in China’s offshore Hong Kong market. Prospectus-based declarations on such allocations suggest that CI undertakings offer strong certification effects. Entrepreneurs planning for IPO thus have a material incentive to court CIs. The present analysis reveals that a firm’s pre-IPO financials and governance attributes strongly correlate with success in this field. Specifically, CI participation is greater in issuers with established long-term loan positions. Firms housing younger CEOs and a greater number of family-connected board officers also generate more CI interest. In contrast, the fraction of independent directors and women on boards exert minimal effect. However, further analysis reveals that greater independent director presence strongly supports CI participation in family-centric entities, but imparts little to no effect on such investment in either state-run or non-family-controlled private issuers. Additionally, an issuer’s political connections galvanize CI participation. Moreover, the present study highlights the importance of family resources (in non-state sponsored entities) and political connections (in state-held firms) in drawing-in CI involvement. Given the spread of CI arrangements to other primary market settings, the present enterprise also offers guidance on anchor investment elsewhere.

scholarly journals Relationship Lending and the Great Depression

2020 ◽  
pp. 1-45 ◽  
Author(s):  
Jon Cohen ◽  
Kinda Hachem ◽  
Gary Richardson
Keyword(s):  
Great Depression ◽  
Banking Sector ◽  
Relationship Lending ◽  
Historical Evidence ◽  
Lending Relationships ◽  
Real Effects ◽  
The Great Depression ◽  
Bank Funding ◽  
Level Of Aggregation

The collapse of long-term lending relationships amplified the Great Depression. We demonstrate this by developing a new measure of lending relationships that can be calculated from widely available data at any level of aggregation. Our approach exploits differences in the responsiveness of loan rates to bank funding costs and is supported by historical evidence and theoretical arguments. The new measure reveals that the marginal impact of bank suspensions on economic activity was higher in more relationship-intensive areas, providing the first formal evidence that relationship lending propagated the real effects of banking sector distress in the early 1930s.

The Recent Trends in Long-Term Bank Funding

2012 ◽  
Author(s):  
Andrea Cardillo ◽  
Andrea Zaghini
Keyword(s):  
Bank Funding ◽  
Recent Trends

Bank ownership type and temporal evolution of long‐term bank funding in the period 2005–2017

2020 ◽  
Vol 91 (2) ◽  
pp. 237-268
Author(s):  
Jari‐Mikko Meriläinen
Keyword(s):  
Temporal Evolution ◽  
Ownership Type ◽  
Bank Ownership ◽  
Bank Funding

A Review of Bank Funding Cost Differentials

2016 ◽  
Vol 49 (2-3) ◽  
pp. 151-174 ◽  
Author(s):  
Randall Kroszner
Keyword(s):  
Bank Funding ◽  
Funding Cost ◽  
Cost Differentials

scholarly journals The Impact of Short- Term Interest Rates on Bank Funding Costs

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 141-148
Author(s):  
Azasakhe Nkcubeko Nomsobo ◽  
Roscoe Bertrum Van Wyk
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Time Series Data ◽  
Series Data ◽  
Bank Capital ◽  
Short Term ◽  
Government Bonds ◽  
Bank Funding ◽  
The Impact

This study examines the impact of short- term interest rates on bank funding costs in South Africa. Literature suggests that rising short- term interest rates may cause similar financial crises experienced in 2007/08 (Bonner & Eijffinger, 2013; Turner, 2013; Saraç & Karagoz, 2016). It is vital to study short- term interest rates and bank funding costs in order to achieve financial stability. The study uses quarterly time series data for the period 2000 to 2014. To estimate the regression, the study uses the Vector Autoregressive model (VAR) and the data is found stationary at first difference. The 3 months Johannesburg Interbank Agreed Rate (JIBAR) is used as a proxy for bank funding costs whilst the prime overdraft rate, 10 -year government bonds and capital ratio are used as proxies for short- term, long- term interest rates and bank capital, respectively. The results show a positive and significant long- term relationship between the variables. The results for prime overdraft rate, 10 -year government bonds and capital ratio conform to the apriori expectations. For GDP growth the results show a positive relationship which does not conform to apriori expectations. Using the variance decomposition, the study illustrates fluctuations in JIBAR was due to changes in its value and fluctuations in the prime rate are also due to JIBAR. The study presents policy options whereby regulatory efforts need to strengthen the capital buffers of banks to reduce bank funding costs and therefore reduce short- term interest rates imposed on borrowers.

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