Does Interbank Borrowing Reduce Bank Risk?
AbstractIn this paper we investigate whether banks that borrow from other banks have lower risk levels. We concentrate on a large sample of Central and Eastern European banks which allows us to explore the impact of interbank lending when exposures are long-term and interbank borrowers are small banks. The results of the empirical analysis generally confirm the hypothesis that long-term interbank exposures result in lower risk of the borrowing banks.
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Bibliographic InfoPaper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 223.
Date of creation: Nov 2007
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More information through EDIRC
interbank market; bank risk; market discipline; transition countries;
Other versions of this item:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- E53 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Deposit Insurance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-26 (All new papers)
- NEP-BAN-2008-01-26 (Banking)
- NEP-MAC-2008-01-26 (Macroeconomics)
- NEP-ORE-2008-01-26 (Operations Research)
- NEP-RMG-2008-01-26 (Risk Management)
- NEP-TRA-2008-01-26 (Transition Economics)
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