Arbeitspapier
Are too-big-to-fail banks history in Europe? Evidence from overnight interbank loans
We investigate how European banks' overnight borrowing costs depend on bank size. We use the Eurosystem's proprietary interbank daily loan data on euro-denominated transactions from 2008-2014. We find that large banks have had a clear borrowing cost advantage over small banks and that this premium increases progressively with the size of the bank. This result is robust with respect to subsamples, subperiods, time aggregation, and control variables such as Tier 1 capital ratio and rating. During episodes of financial stress, the size advantage becomes several times larger. However, we also find evidence that the new recovery and resolution framework for banks may have slightly reduced the borrowing cost advantage of larger banks in Europe.
- ISBN
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978-952-323-081-1
- Sprache
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Englisch
- Erschienen in
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Series: Bank of Finland Research Discussion Papers ; No. 29/2015
- Klassifikation
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Insurance; Insurance Companies; Actuarial Studies
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Financial Institutions and Services: Government Policy and Regulation
- Ereignis
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Geistige Schöpfung
- (wer)
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Tölö, Eero
Jokivuolle, Esa
Virén, Matti
- Ereignis
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Veröffentlichung
- (wer)
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Bank of Finland
- (wo)
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Helsinki
- (wann)
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2015
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Tölö, Eero
- Jokivuolle, Esa
- Virén, Matti
- Bank of Finland
Entstanden
- 2015