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DIW Economic Bulletin 11 / 2015

Upswing in a Subdued Global Economy: DIW Economic Outlook

The German economy continues to recover, and will grow by 2.2 percent in 2015 and by 1.9 percent in 2016. The unemployment rate will further decline, to 6.4 percent this year and 6.1percent in 2016. Inflation, which averages 0.5 percent this year, will be substantially dampened by the slump in oil prices; in 2016 as well, inflation will remain low, at 1.2 percent. The global economy continues in

2015| Ferdinand Fichtner, Guido Baldi, Franziska Bremus, Karl Brenke, Christian Dreger, Hella Engerer, Christoph Große Steffen, Simon Junker, Claus Michelsen, Katharina Pijnenburg, Maximilian Podstawski, Malte Rieth, Kristina van Deuverden, Aleksandar Zaklan
DIW Economic Bulletin 9 / 2014

Banking Union and Bank Regulation: Banking Sector Stability in Europe

Despite the most recent period of calm on the financial markets, the long-term resilience of the European financial system is not yet assured, even several years after the financial crisis began. However, the stability of the financial system playsa crucial role for real economic development and consequently for growth and prosperity. The financial crisis has shown that stricter regulation is

2014| Franziska Bremus, Claudia Lambert
Diskussionspapiere 1822 / 2019

The Nexus between Loan Portfolio Size and Volatility: Does Banking Regulation Matter?

Since the global financial crisis and the related restructuring of banking systems, bank concentration is on the rise in many countries. Consequently, bank size and its role for macroeconomic volatility (or: stability) is the subject of intense debate. This paper analyzes the effects of financial regulations on the link between bank size, as measured by the volume of the loan portfolio, and

2019| Franziska Bremus, Melina Ludolph
Diskussionspapiere 1768 / 2018

Legal Harmonization, Institutional Quality, and Countries' External Positions: A Sectoral Analysis

This paper analyzes links between institutional harmonization and bilateral portfolio debt and equity holdings at the sectoral level. Motivated by the action plan for the European Capital Markets Union, we examine the potential for legal harmonization and convergence in institutional quality to affect financial structures. Our analysis yields three key insights. First, legal harmonization across

2018| Franziska Bremus, Tatsiana Kliatskova
Diskussionspapiere 1757 / 2018

Interactions between Regulatory and Corporate Taxes: How Is Bank Leverage Affected?

Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The

2018| Franziska Bremus, Kirsten Schmidt, Lena Tonzer
Diskussionspapiere 1650 / 2017

Don't Stop Me Now: The Impact of Credit Market Fragmentation on Firms' Financing Constraints

This paper investigates how the withdrawal of banks from their cross-border business impacted the borrowing costs of European firms since the crisis. We combine aggregate information on total and cross-border credit with firm-level survey data for the period 2010 - 2014. We find that the decline in cross-border lending led to a deterioration in the borrowing conditions of small firms. In countries

2017| Franziska Bremus, Katja Neugebauer
Diskussionspapiere 1636 / 2017

Bank-Specific Shocks and House Price Growth in the U.S.

This paper investigates the link between mortgage supply shocks at the banklevel and regional house price growth in the U.S. using micro-level data on mortgage markets from the Home Mortgage Disclosure Act for the 1990-2014 period. Our results suggest that bank-specific mortgage supply shocks indeed affect house price growth at the regional level. The larger the idiosyncratic shocks to newly

2017| Franziska Bremus, Thomas Krause, Felix Noth
Diskussionspapiere 1411 / 2014

Drivers of Structural Change in Cross-Border Banking since the Global Financial Crisis

The paper analyzes the effects of changes to regulatory policy and to monetary policy on cross-border bank lending since the global financial crisis. Cross-border bank lending has decreased, and the home bias in the credit portfolio of banks has risen sharply, especially among banks in the euro area. Our results suggest that expansionary monetary policy in the source countries – as measured by the

2014| Franziska Bremus, Marcel Fratzscher
Diskussionspapiere 1348 / 2013

Big Banks and Macroeconomic Outcomes: Theory and Cross-Country Evidence of Granularity

Does the mere presence of big banks affect macroeconomic outcomes? In this paper, we develop a theory of granularity (Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups. Using this framework, we show conditions under which idiosyncratic shocks to bank lending can generate aggregate fluctuations in the credit supply when the

2013| Franziska Bremus, Claudia M. Buch, Katheryn N. Russ, Monika Schnitzer
Diskussionspapiere 1346 / 2013

Granularity in Banking and Growth: Does Financial Openness Matter?

We explore the impact of large banks and of financial openness for aggregate growth. Large banks matter because of granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank-level do not cancel out in the aggregate but can affect macroeconomic outcomes. Financial openness may affect GDP growth in and of itself, and it may also

2013| Franziska Bremus, Claudia M. Buch
87 results, from 41