Commercial Real Estate And Financial Stability Evidence From The Us Banking Sector

Author : Mr. Salih Fendoglu
Publisher : International Monetary Fund
Page : 11 pages
File Size : 41,5 Mb
Release : 2021-05-26
Category : Business & Economics
ISBN : 9781513578286

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Commercial Real Estate and Financial Stability: Evidence from the US Banking Sector by Mr. Salih Fendoglu Pdf

This note analyzes the implications of changes in commercial real estate (CRE) prices for the stability of the US banking sector. Using detailed bank-level and CRE price data for US metropolitan statistical areas, the analysis shows that, following a decline in CRE prices, banks with greater exposures to CRE loans perform worse than their counterparts, experiencing higher non-performing CRE loans, lower revenues, and lower capital. These effects are particularly pronounced if the drop in CRE prices turns out to be persistent because of possible structural shifts in CRE demand—for example, because of an increased trend toward e-commerce and teleworking—even after the coronavirus disease (COVID-19) pandemic is over. The impact of a decline in CRE prices is especially true for small and community banks, which tend to have the highest CRE loan exposures. While the US banking sector has remained resilient during the pandemic crisis due to strong capital buffers and massive policy support, these findings suggest that continued vigilance is warranted with regard to potential downside risks to CRE prices amidst ongoing structural shifts in the sector.

Author : Elizabeth Warren
Publisher : DIANE Publishing
Page : 190 pages
File Size : 50,9 Mb
Release : 2010-08
Category : Business & Economics
ISBN : 9781437930535

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Commercial Real Estate Losses and the Risk to Financial Stability by Elizabeth Warren Pdf

Author : United States. Congressional Oversight Panel
Publisher : Unknown
Page : 168 pages
File Size : 47,8 Mb
Release : 2010
Category : Bank loans
ISBN : PURD:32754081252359

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Congressional Oversight Panel February Oversight Report by United States. Congressional Oversight Panel Pdf

Author : United States. Congress. House. Committee on Banking, Finance, and Urban Affairs
Publisher : Unknown
Page : 886 pages
File Size : 48,7 Mb
Release : 1990
Category : Financial institutions
ISBN : STANFORD:36105045155814

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Commercial Real Estate Practices by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs Pdf

Author : United States. Congressional Oversight Panel
Publisher : Unknown
Page : 182 pages
File Size : 55,8 Mb
Release : 2011
Category : Business & Economics
ISBN : MINN:31951D032486748

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Commercial Real Estate's Impact on Bank Stability by United States. Congressional Oversight Panel Pdf

Author : Mr.Luc Laeven,Harry Huizinga
Publisher : International Monetary Fund
Page : 43 pages
File Size : 48,8 Mb
Release : 2009-09-01
Category : Business & Economics
ISBN : 9781451873542

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Accounting discretion of banks during a financial crisis by Mr.Luc Laeven,Harry Huizinga Pdf

This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these assets, especially during the U.S. mortgage crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks use discretion in the classification of mortgage-backed securities to inflate their books. Our results indicate that banks' balance sheets offer a distorted view of the financial health of the banks.

Author : Michael Ball,Colin Lizieri,Bryan MacGregor
Publisher : Routledge
Page : 422 pages
File Size : 51,8 Mb
Release : 2012-10-12
Category : Business & Economics
ISBN : 9781134749669

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The Economics of Commercial Property Markets by Michael Ball,Colin Lizieri,Bryan MacGregor Pdf

This new text provides a rigorous analysis of real estate markets. Three main sections cover: microeconomics of property markets the macroeconomics of commercial property the financial economics of property Global empirical examples illustrate the theories and issues. This often complex area is made accessible: each chapter contains a boxed summary and questions for self-testing or discussion.

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 85 pages
File Size : 40,5 Mb
Release : 2019-06-24
Category : Business & Economics
ISBN : 9781498321112

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Canada by International Monetary Fund. Monetary and Capital Markets Department Pdf

This Financial System Stability Assessment paper discusses that Canada has enjoyed favorable macroeconomic outcomes over the past decades, and its vibrant financial system continues to grow robustly. However, macrofinancial vulnerabilities—notably, elevated household debt and housing market imbalances—remain substantial, posing financial stability concerns. Various parts of the financial system are directly exposed to the housing market and/or linked through housing finance. The financial system would be able to manage severe macrofinancial shocks. Major deposit-taking institutions would remain resilient, but mortgage insurers would need additional capital in a severe adverse scenario. Housing finance is broadly resilient, notwithstanding some weaknesses in the small non-prime mortgage lending segment. Although banks’ overall capital buffers are adequate, additional required capital for mortgage exposures, along with measures to increase risk-based differentiation in mortgage pricing, would be desirable. This would help ensure adequate through-the cycle buffers, improve mortgage risk-pricing, and limit procyclical effects induced by housing market corrections.

Author : Ouarda Merrouche,Ms. Enrica Detragiache,Asli Demirgüç-Kunt
Publisher : International Monetary Fund
Page : 38 pages
File Size : 40,8 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9781455254873

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Bank Capital by Ouarda Merrouche,Ms. Enrica Detragiache,Asli Demirgüç-Kunt Pdf

Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis, differences in capital did not have much impact on stock returns; (ii) during the crisis, a stronger capital position was associated with better stock market performance, most markedly for larger banks; (iii) the relationship between stock returns and capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant.

Author : Kesra Nermend,Małgorzata Łatuszyńska,Eleftherios Thalassinos
Publisher : Springer Nature
Page : 398 pages
File Size : 42,9 Mb
Release : 2021-08-10
Category : Business & Economics
ISBN : 9783030670207

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Decision-Making in Management by Kesra Nermend,Małgorzata Łatuszyńska,Eleftherios Thalassinos Pdf

Making important business decisions is usually a difficult and complicated task. In the modern economy where businesses have to solve increasingly complex decision-making problems, it is important to learn and use methods and techniques including the analysis of behavioral data to support decision-making in practice. This book presents various methods and solutions to problems in modern data acquisition techniques and practical aspects of decision making. In particular, it addresses such important issues as: business decision making, multi-criteria decision analysis (MCDA), multidimensional comparative analysis (MCA), decision games and data acquisition techniques for decision making (declarative techniques and cognitive neuroscience techniques). Important topics such as consumers’ rational behavior, environmental management accounting, operational research methods, neuroscience including epigenetics, DEA analysis etc., as well as case studies related to decision making in management are also included.

Author : Robert DeYoung
Publisher : DIANE Publishing
Page : 57 pages
File Size : 54,9 Mb
Release : 2010-08
Category : Business & Economics
ISBN : 9781437931006

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Executive Compensation and Business Policy Choices at U. S. Commercial Banks by Robert DeYoung Pdf

This study examines whether and how the terms of CEO compensation contracts at large commercial banks between 1994 and 2006 influenced, or were influenced by, the risky business policy decisions made by these firms. The authors find strong evidence that bank CEOs responded to contractual risk-taking incentives by taking more risk; bank boards altered CEO compensation to encourage executives to exploit new growth opportunities; and bank boards set CEO incentives in a manner designed to moderate excessive risk-taking. These relationships are strongest during the second half of the author¿s sample, after deregulation and technological change had expanded banks' capacities for risk-taking. Charts and tables.

Author : Anonim
Publisher : Unknown
Page : 128 pages
File Size : 54,5 Mb
Release : 2024-06-29
Category : Electronic
ISBN : 9789814464208

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The International Financial Crisis by Anonim Pdf

Author : Indranarain Ramlall
Publisher : Emerald Group Publishing
Page : 240 pages
File Size : 53,7 Mb
Release : 2018-12-14
Category : Business & Economics
ISBN : 9781787568396

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The Corporate, Real Estate, Household, Government and Non-Bank Financial Sectors Under Financial Stability by Indranarain Ramlall Pdf

The Corporate, Real Estate, Household, Government and Non-Bank Financial Sectors Under Financial Stability undertakes a systematic approach to provide a complete analysis and risk assessment of each of these sectors which interact closely to financial stability.

Author : United States. Congress. House. Committee on Banking, Finance, and Urban Affairs
Publisher : Unknown
Page : 212 pages
File Size : 54,6 Mb
Release : 1992
Category : Business & Economics
ISBN : LOC:00185790472

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Commercial Real Estate and the Coordination of Supervision Among Regulators in Different Countries by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs Pdf

Author : Richard Herring,Susan M. Wachter
Publisher : Unknown
Page : 92 pages
File Size : 55,8 Mb
Release : 1999
Category : Business & Economics
ISBN : UCSD:31822026048751

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Real Estate Booms and Banking Busts by Richard Herring,Susan M. Wachter Pdf