We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Persistency of window dressing practices in the U.S. repo markets after the GFC: The unexplored role of the deposit insurance premium.
- Authors
Jaafar, Aziz; Polizzi, Salvatore; Reghezza, Alessio
- Abstract
We investigate whether the regulatory improvements made in the aftermath of the global financial crisis have been effective in limiting bank downward window dressing by means of repos in the United States. We find that a strict application of the Basel III regulation wipes out incentives to engage in window dressing to bolster the level of leverage Tier 1 ratio at quarter‐end. We also show that the persistency of window dressing is related to the computation of the Federal Deposit Insurance Corporation assessment base, which motivates banks to engage in window dressing to reduce the deposit insurance premium.
- Subjects
BASEL (Switzerland); SHOW windows; FEDERAL Deposit Insurance Corp.; DEPOSIT insurance; BANK deposits; INSURANCE premiums; GLOBAL Financial Crisis, 2008-2009; BASEL III (2010)
- Publication
European Financial Management, 2023, Vol 29, Issue 2, p634
- ISSN
1354-7798
- Publication type
Article
- DOI
10.1111/eufm.12367