18.12.2018 • 22/2018
IWH leitet millionenschweres EU-Forschungsprojekt zur Produktivität
Verliert das Produktivitätswachstum in den Industrieländern an Schwung? Und wenn ja, warum? Mit diesen Fragen, die für die gesamte Wirtschaft von zentraler Bedeutung sind, befasst sich das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) ab Jahresbeginn 2019 als Koordinator eines neuen EU-Projekts. Unter dem Titel MICROPROD arbeiten Ökonomen und Statistikexperten neun europäischer Partner für drei Jahre zusammen. Mit einem Gesamtbudget von knapp drei Millionen Euro ist es das bislang größte EU-Projekt am IWH.
Steffen Müller
Lesen
Housing Consumption and Macroprudential Policies in Europe: An Ex Ante Evaluation
Antonios Mavropoulos, Qizhou Xiong
IWH Discussion Papers,
Nr. 17,
2018
Abstract
In this paper, we use the panel of the first two waves of the Household Finance and Consumption Survey by the European Central Bank to study housing demand of European households and evaluate potential housing market regulations in the post-crisis era. We provide a comprehensive account of the housing decisions of European households between 2010 and 2014, and structurally estimate the housing preference of a simple life-cycle housing choice model. We then evaluate the effect of a tighter LTV/LTI regulation via counter-factual simulations. We find that those regulations limit homeownership and wealth accumulation, reduces housing consumption but may be welfare improving for the young households.
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Comments on “Consultation BCBS discussion paper on the regulatory treatment of sovereign exposures”
Michael Koetter, Lena Tonzer
Einzelveröffentlichungen,
2018
Abstract
The BCBS discussion paper on the regulatory treatment of sovereign exposures addresses a so far hardly touched topic as concerns capital regulation. While the regulatory framework has been changed substantially over recent years including the establishment of the European Banking Union, risk weights on sovereign exposures have remained mostly unchanged and sovereign exposures of banks benefit from a favourable capital treatment. This applies despite the fact that the recent European sovereign debt crisis has revealed the potential of a doom loop between bank and sovereign risk and demonstrated that sovereign exposures are by no means “risk-free”. The paper is thus an important proposal how to change the risk evaluation of banks’ sovereign exposures.
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Sovereign Stress, Banking Stress, and the Monetary Transmission Mechanism in the Euro Area
Oliver Holtemöller, Jan-Christopher Scherer
IWH Discussion Papers,
Nr. 3,
2018
Abstract
In this paper, we investigate to what extent sovereign stress and banking stress have contributed to the increase in the level and in the heterogeneity of nonfinancial firms’ refinancing costs in the Euro area during the European debt crisis and how they did affect the monetary transmission mechanism. We identify the increasing effect of government bond yield spreads (sovereign stress) and the share of non-performing loans (banking stress) on firms’ financing costs using an instrumental-variable approach. Moreover, we estimate both sources of stress to have significantly impaired the monetary transmission mechanism during the European debt crisis.
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Does It Pay to Get Connected? An Examination of Bank Alliance Network and Bond Spread
Iftekhar Hasan, Céline Meslier, Amine Tarazi, Mingming Zhou
Journal of Economics and Business,
im Erscheinen
Abstract
This paper examines the effects of bank alliance network on bonds issued by European banks during the period 1990–2009. We construct six measures capturing different dimensions of banks’ network characteristics. In opposition to the results obtained for non-financial firms, our findings indicate that being part of a network does not create value for bank’s bondholders, indicating a dark side effect of strategic alliances in the banking sector. While being part of a network is perceived as a risk-increasing event by market participants, this negative perception is significantly lower for the larger banks, and, to a lesser extent, for the more profitable banks. Moreover, during crisis times, the positive impact on bond spread of a bank’s higher centrality or of a bank’s higher connectedness in the network is stronger, indicating that market participants may fear spillover effects within the network during periods of banks’ heightened financial fragility.
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Delay Determinants of European Banking Union Implementation
Michael Koetter, Thomas Krause, Lena Tonzer
Abstract
To safeguard financial stability and harmonise regulation, the European Commission substantially reformed banking supervision, resolution, and deposit insurance via EU directives. But most countries delay the transposition of these directives. We ask if transposition delays result from strategic considerations of governments conditional on the state of their financial, regulatory, and political systems? Supervisors might try to protect national banking systems and local politicians maybe reluctant to surrender national sovereignty to deal with failed banks. Alternatively, intricate financial regulation might require more implementation time in large and complex financial and political systems. We therefore collect data on the transposition delays of the three Banking Union directives and investigate observed delay variation across member states. Our correlation analyses suggest that existing regulatory and institutional frameworks, rather than banking market structure or political factors, matter for transposition delays.
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Competition and Contestability in Bank Retail Markets
Reint E. Gropp, Christoffer Kok
Handbook of Competition in Banking and Finance,
2017
Abstract
We examine the role of internet banking in retail-banking competition. The empirical analysis focuses on European banks for the period 2012-15. Building on the idea of contestable markets, we show that internet banking has increased competition through the contestability of markets. The effect is stronger for retail deposits, but recently consumer loans also show an effect. We attribute this finding to the advent of fintechs. These outcomes support the use of non-concentration-based competition measures in banking research.
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Do Conventional Monetary Policy Instruments Matter in Unconventional Times?
Manuel Buchholz, Kirsten Schmidt, Lena Tonzer
Abstract
This paper investigates how declines in the deposit facility rate set by the European Central Bank (ECB) affect bank behavior. The ECB aims to reduce banks’ incentives to hold reserves at the central bank and thus to encourage loan supply. However, given depressed margins in a low interest environment, banks might reallocate their liquidity toward more profitable liquid assets other than traditional loans. Our analysis is based on a sample of euro area banks for the period from 2009 to 2014. Three key findings arise. First, banks reduce their reserve holdings following declines in the deposit facility rate. Second, this effect is heterogeneous across banks depending on their business model. Banks with a more interest-sensitive business model are more responsive to changes in the deposit facility rate. Third, there is evidence of a reallocation of liquidity toward loans but not toward other liquid assets. This result is most pronounced for non-GIIPS countries of the euro area.
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Transposition Frictions, Banking Union, and Integrated Financial Markets in Europe
Michael Koetter, Thomas Krause, Lena Tonzer
G20 Insights Policy Brief, Policy Area "Financial Resilience",
2017
Abstract
In response to the financial crisis of 2007/2008, policymakers implemented comprehensive changes concerning the regulation and supervision of banks. Many of those changes, including Basel III or the directives pertaining to the Single Rulebook in the European Union (EU), are agreed upon at the supranational level, which constitutes a key step towards harmonized regulation and supervision in an integrated European financial market. However, the success of these reforms depends on the uniform and timely implementation at the national level. Avoiding strategic delays to implement EU regulation into national laws should thus constitute a main target of the G20.
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