Does Interbank Borrowing Reduce Bank Risk?

Dinger, Valeriya und Hagen, Jürgen von (November 2007): Does Interbank Borrowing Reduce Bank Risk? SFB/TR 15 Discussion Paper No. 223

Abstract

In 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.

• Dokumententyp: Paper
• Keywords: interbank market, bank risk, market discipline, transition countries
• Fakultät: Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems ; Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > A5 - Unvollständige Vertragsbeziehungen und die Gestaltung von Residualrechten
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: G21, E53
• Sprache: Englisch