کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
974020 1479790 2013 17 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Financial fragility, uninsured deposits, and the cost of debt
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Financial fragility, uninsured deposits, and the cost of debt
چکیده انگلیسی

Using annual data from 1995 to 2009, I analyze the impact of banks’ financial fragility on the costs of U.S. corporate bank loans. Diamond and Rajan (2001) hypothesize that financially fragile banks are able to raise funds at a lower cost and competition among banks result in some of these benefits being passed on to borrowers. My results provide broad support for this hypothesis, as I find that a one standard deviation increase in a bank's financial fragility lowers the cost of this bank's corporate loans by 7%. Since some types of regulation, such as deposit insurance, can decrease banks’ financial fragility, this paper also contributes to the debate on the benefits and costs of bank regulation which can be helpful for policy-making.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: The North American Journal of Economics and Finance - Volume 24, January 2013, Pages 159–175
نویسندگان
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