Browsing by Subject "lainat"

Sort by: Order: Results:

Now showing items 1-20 of 20
  • Chang, Roberto; Fernández, Andrés; Gulan, Adam (2016)
    Bank of Finland Research Discussion Papers 22/2016
    Published in Journal of Monetary Economics, Volume 85, 1 January 2017: 90-109
    Corporate sectors in emerging markets have noticeably increased their reliance on foreign financing, presumably reflecting low global interest rates. The evidence also shows a rebalancing from bank loans towards bonds. To study these developments, we develop a dynamic open economy model where these modes of finance are determined endogenously. The model replicates the stylized facts following a drop in world interest rates; in particular, rebalancing towards bonds occurs because bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is suitable for studying interactions between modes of finance and the macroeconomy.
  • Juselius, Mikael; Tarashev, Nikola (2021)
    BoF Economics Review 3/2021
    While corporate credit losses have been low since the start of the Covid-19 pandemic, their future evolution is quite uncertain. Using a forecasting model with a solid track record, we find that the baseline scenario (“expected losses”) is benign up to 2024. This is due to policy support measures that have kept debt service costs low. However, high indebtedness, built up when the pandemic impaired real activity, suggests increased tail risks: plausible deviations from the baseline scenario (“unexpected losses”) feature ballooning corporate insolvencies. Taken at face value, the low expected loss forecasts are consistent with low bank provisions, whereas the high unexpected loss forecasts call for substantial capital.
  • Hasan, Iftekhar; Minnick, Kristina; Raman, Kartik (2020)
    Journal of Corporate Finance June ; 2020
    Using detailed loan level data, we examine bank lending to corporate customers relying on principal suppliers. Customers experience larger loan spreads, higher intensity of covenants and greater likelihood of requiring collateral when they depend more on the principal supplier for inputs. The positive association between the customer’s loan spread and its dependence on the principal supplier is less pronounced when the bank has a prior loan outstanding with the principal supplier, and when the bank has higher market share in the industry. Longer relationships between the customer and its principal supplier, and between the bank and the principal supplier, mitigate lending constraints. The evidence is consistent with corporate suppliers serving as an informational bridge between the lender and the customer.
  • Kiviniemi, Arttu (2019)
    Valtiovastuut muodostavat merkittävän riskikeskittymän euroalueen pankeissa ..2 Vakavaraisuussääntely sivuuttaa monelta osin valtiolainoihin liittyvät riskit ..4 Valtiovastuiden vakavaraisuuskäsittelyä koskevat muutosehdotukset ..6 Valtiovastuiden keskittyneisyyteen perustuvien riskipainolisien vakavaraisuusvaikutus jäisi todennäköisesti maltilliseksi ..9 Yhteenveto ..11
  • Drehmann, Mathias; Juselius, Mikael; Korinek, Anton (2018)
    Bank of Finland Research Discussion Papers 10/2018
    Traditional economic models have had difficulty explaining the non-monotonic real effects of credit booms and, in particular, why they have predictable negative after-effects for up to a decade. We provide a systematic transmission mechanism by focusing on the flows of resources between borrowers and lenders, i.e. new borrowing and debt service. We construct the first cross-country dataset of these flows for a panel of house-hold debt in 16 countries. We show that new borrowing increases economic activity but generates a pre-specified path of debt service that reduces future economic activity. The protracted response in debt service derives from two key analytic properties of credit booms: (i) new borrowing is auto-correlated and (ii) debt contracts are long term. We confirm these properties in the data and show that debt service peaks on average four years after credit booms and is associated with significantly lower output and higher crisis risk. Our results explain the transmission mechanism through which credit booms and busts generate non-monotonic and long-lasting aggregate demand effects and are, hence, crucial for macroeconomic stabilization policy.
  • Hake, Mariya; Poyntner, Philipp (2020)
    BOFIT Discussion Papers 3/2020
    This paper constitutes an initial attempt to shed light on the role of income distribution in household debt and financial market access in Central, Eastern and Southeastern Europe (CESEE). Using household-level data from the OeNB’s Euro Survey for the period 2009-2018, we address the question whether interpersonal comparisons (“keeping up with the CESEE Joneses" i.e. "the Novaks”) affect the probability of having and planning a loan. Applying multilevel probit modeling to take into account the hierarchical structure of the data, our results support the notion that higher income inequality is negatively correlated with the probability of having a loan at the bottom of the distribution, and positively at the top. We show this impact for almost all components of household debt, but evidence is strongest for mortgage, car and foreign currency loans. Interpersonal comparisons turn out to drive loan intentions, however, mainly on the very top of the income distribution.
  • Francis, Bill B.; Hasan, Iftekhar; Zhu, Yun (2020)
    Financial Review 1 ; February
    Published in BoF DP 29/2013.
    This paper provides evidence that the managerial effect is a key determinant of firms’ cost of capital, in the context of private debt contracting. Applying the novel empirical method developed by an earlier study to a large sample that tracks the job movement of top managers, we find that the managerial effect is a critical and significant factor that explains a large part of the variation in loan contract terms more accurately than firm fixed effects. Additional evidence shows that banks “follow” managers when they change jobs and offer loan contracts with preferential terms to their new firms.
  • Gaganis, Chrysovalantis; Hasan, Iftekhar; Pasiouras, Fotios (2020)
    Journal of Empirical Finance March
    Using a sample of around 30 countries over the period 2001–2015, this study provides evidence that deeply rooted cultural differences are significantly associated with the use of mortgage debt. More detailed, we find that power distance and uncertainty avoidance have a negative impact on the value of the total outstanding residential loans to GDP. This finding is robust across various specifications and the use of alternative measures of mortgage debt. In contrast, trust has a positive and robust impact on all the measures of mortgage debt. Other dimensions of national culture like long-term orientation, individualism, and indulgence, also appear to matter, however, their impact depends on the control variables and the employed measure of mortgage debt.
  • Topi, Jukka (2016)
    Euro & talous. Blogi
    Mitä kotitalouksien velkaantuneisuuden tuomille riskeille voidaan tehdä ja on jo tehty? Yksi mahdollisuus on rajoittaa velkaantuneisuuden kasvua.
  • Hasan, Iftekhar; Hoi, Chun-Keung (Stan); Wu, Qiang; Zhang, Hao (2015)
    Bank of Finland Research Discussion Papers 21/2015
    Published in Journal of Financial and Quantitative Analysis, 52, 3, 2017: 1017-1047
    We find that firms headquartered in U.S. counties with higher levels of social capital incur lower bank loan spreads. This finding is robust to using organ donation as an alternative social-capital measure and incremental to the effects of religiosity, corporate social responsibility, and tax avoidance. We identify the causal relation using companies with a social-capital-changing headquarter relocation. We also find that high-social-capital firms face loosened nonprice loan terms, incur lower at-issue bond spreads, and prefer bonds over loans. We conclude that debt holders perceive social capital as providing environmental pressure constraining opportunistic firm behaviors in debt contracting.
  • Tuomikoski, Olli (2016)
    Euro & talous. Blogi
    Tänään 20.10.2016 vietetään Euroopan tilastopäivää muistutuksena laadukkaiden tilastojen merkityksestä yhteiskunnalle. Päivä avataan Budapestissa Conference of European Statistics Stakeholders -tapahtumassa, johon kokoontuu Euroopan maiden tilastojen tuottajia ja käyttäjiä.
  • Arifin, Taufiq; Hasan, Iftekhar; Kabir, Rezaul (2020)
    Journal of Corporate Finance December
    This paper examines the economic effects of a firm's approach to developing and maintaining political connections. Specifically, we investigate whether lenders favor transactional connection as opposed to relational connection. By tracing firms in a politically volatile emerging democracy in Indonesia, we find that firms following a transactional political connection strategy experience a relatively lower cost of debt than those with a relational strategy. The effect is more pronounced for firms facing high financial distress. The finding is robust to cost of bank loans and a variety of regression methods. Overall, the evidence suggests that in times of frequently changing political regimes, firms benefit from a transactional relationship with politicians as it enables to update connection with the government in power. Relational connection is valuable for a firm only when the political regime connected with it gains power.
  • Koskinen, Kimmo (2019)
    Euro & talous. Analyysi
    Asuntomarkkinoiden ylikuumeneminen ja kotitalouksien voimakas velkaantuminen olivat keskeisiä haavoittuvuuksia Yhdysvalloissa vuosikymmenen takaisessa finanssikriisissä. Rahoitusjärjestelmän ongelmien kärjistymiseen vaikuttivat osaltaan merkittävästi myös pankkien alhaisista vakavaraisuusvaatimuksista johtunut heikko riskinkantokyky ja pankkien vahvat kytkökset pankkisektorin ulkopuoliseen rahoitussektoriin, riippuvuus lyhytaikaisesta markkinavarainhankinnasta, monimutkaiset ja riskeiltään huonosti ymmärretyt rahoitusinstrumentit asuntorahoituksessa sekä puutteellinen valvonta.
  • Turkkila, Anne (2017)
    Euro & talous. Blogi
    Euroopan keskuspankki julkaisi alkuviikosta visualisointeja kansallisista tilastoista Meidän Tilastomme -verkkopalvelussa. Palvelussa esitellään talouden eri sektoreiden varallisuutta ja velkoja yksittäisissä euromaissa.