We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
What's Different about Bank Holding Companies?
- Authors
Chami, Ralph; Cosimano, Thomas F.; Ma, Jun; Rochon, Celine
- Abstract
We develop a dynamic model of a BHC that encompasses both a trading desk and a loan desk, and explore the role of risk attitude and overleveraging by the trading desk. We trace the impact of monetary policy and market innovations on bank behavior in the presence of Basel III type regulations. We show that the value of the BHC is enhanced by operating both desks. We explore alternative regulatory remedies to ongoing efforts to ring-fence the proprietary trading business, and show that regulations that target bank governance can mitigate possible rogue trading and the overleveraging problem.
- Subjects
BASEL (Switzerland); BANK holding companies; SECURITIES trading; BASEL III (2010); MONETARY policy; CREDIT risk; DYNAMIC models
- Publication
Journal of Risk & Financial Management, 2022, Vol 15, Issue 5, p206
- ISSN
1911-8066
- Publication type
Article
- DOI
10.3390/jrfm15050206