The concept of a lender of last resort (LLR) stems from a central banking principle dating back to Bagehot more than a century ago. The principle holds that in a financial panic, the central bank should stand ready "to lend freely...whenever the security is good" (Bagehot 1873, 48, 51). This precept implies that in a financial crisis there is a multipleequilibrium situation, and that the good o...

When I was invited to this banking conference, I agreed to talk about bank interest margins – in particular, the international comparison of these margins. As it turns out, we at the Reserve Bank have said about as much as can fruitfully be said on this subject in our recent Annual Report. Therefore, I will quickly summarise this subject in the first third of this talk, then move on to somethin...

Tujuan dari penelitian ini adalah untuk mengetahui apakah P2P Lending dapat menggantikan atau menjadi pelengkap Bank dalam kegiatan pelayanan keuangan ke UMKM dan memberikan alternatif solusi, baik bagi maupun yang menyediakan layanan KUR. Lokasi di Kabupaten Pesawaran. Populasi seluruh ada Teknik pengambilan sampel menggunakan cluster random sampling , yaitu dengan tahap (1) Membagi Pesawaran ...

Financial crises are associated with reduced volumes and extreme levels of rates for term inter-bank loans, re‡ected in one-month and three-month LIBOR. We explain such stress by modeling leveraged banks’precautionary demand for liquidity. Asset shocks impair a bank’s ability to roll over debt because of agency problems associated with high leverage. In turn, banks hoard liquidity and decrease ...

This paper analyzes the determinants of multilateral aid from international financial institutions (IFIs) to Pakistan, focusing on the world three major IFIs, the World Bank, the IMF and the ADB. Political economic factors, notably bureaucratic interests and major shareholders economic interests, are suspected to be relevant in international aid allocation decisions. Pooled Tobit estimation ana...

We show that the regulation of bank lending practices is necessary for the optimal provision of private liquidity. In an environment in which bankers cannot commit to repay their creditors, we show that neither an unregulated banking system nor narrow banking can provide the socially e¢ cient amount of liquidity. If the bankers provided such an amount, then they would prefer to default on their...

We analyze the transmission effects of monetary policy in a general equilibrium model of the financial sector, with bank lending and securities markets. Bank lending is constrained by capital adequacy requirements, and asymmetric information adds a cost to outside bank equity capital. In our model, monetary policy does not affect bank lending through changes in bank liquidity; rather, it operat...

This paper reviews the theoretical and empirical literature on impact of bank regulation lending. It also structures evidence according to various regulatory measures The surveyed generally indicates that lending could be asymmetric, depending trade-off between costs benefits regulation. from studies shows is ambiguous. Although many found negative, some established it was positive while others...

I use geographic variation in bank lending to study how bank real estate losses impacted the supply of credit and employment during the Great Recession. Banks exposed to distressed housing markets cut mortgage and small business lending relative to other banks in the same county. This lending contraction had real effects, as counties whose banks were exposed to adverse shocks in other markets s...

This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan contracts in Belgium. We analyse the effects of bank mergers on the probability of borrowers maintaining their lending relationships and on their ability to continue tapping bank credit. The Belgian financial environment reflects a number of interesting features: high banking ...