While the appointment of just one woman to a board of directors has a positive impact, the benefits become clear and reverberate throughout the company when there are at least three women on the board. (Shutterstock)Ten years after the securities regulations came into force, which established a disclosure regime regarding the number and percentage of women sitting on a board of directors, or holding an executive position, where do we stand?
Climate-linked bonds, issued by governments and supranational organizations, are pivotal in advancing towards a net-zero economy. These bonds adjust their payoffs based on climate variables such as average temperature and greenhouse gas emissions, providing investors a hedge against long-term climate risks. They also signal government commitment to climate action and incentivize stronger policies. The price differential between climate-linked bonds and nominal bonds reflects market expectations of climate risks.
Exploiting the recalibration of ECB’s outstanding central bank funding in 2022, we show that a sharp reabsorption of bank liquidity induces a tightening impact on credit supply, as intended when centralbanks reduce their balance sheets. The tightening originates from the sudden relative convenience for banks accustomed to large liquidity holdings to more rapidly adapt to the new environment. Moreover, we show that the associated reduction in credit supply has real economic effects.
Imagine going on a road trip and passing several seemingly identical McDonald’s restaurants. Despite their uniform appearance, their ownership may vary widely: One might be run by a family, another by an individual entrepreneur, and others owned directly by the corporation.
Oselote/ShutterstockIn November 2023, the estates of two now-deceased policyholders sued the US health insurer, United Healthcare, for deploying what they allege is a flawed artificial intelligence (AI) system to systematically deny patient claims.
Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder
Banks are reluctant to tap central bank backup liquidity facilities and use the borrowed funds for loans to the real economy. We show that excessively parsimonious borrowing and lending can arise in a stigma-free model where the banking sector has an incentive to overissue deposits. Banks don’t heed the central bank’s call for more credit to finance investment because they simply ignore the collective gains from stronger activity in their atomistic decisions. Central banks can address this market failure by disintermediating market-based finance.
To what extent can private firms’ external equity substitute for debt financing in a banking crisis? To answer this question, I use firm-level data and firm-bank linkages to estimate the causal effect of an imported lending cut from a large German bank on firms’ capital structure and real outcomes. The estimates imply that for every 1 euro reduction in debt, private firms in Germany received 0.27 euros of external equity.
Sociologist Michael A. McCarthy's latest book shows how ordinary people can take back control of financial capitalism and make it work for them.
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Robin Braun, George Kapetanios, Massimiliano MarcellinoThis paper studies the estimation and inference of time-varying impulse response functions in structural vector autoregressions (SVARs) identified with external instruments. Building on kernel estimators that allow for nonparametric time variation, we derive the asymptotic distributions of the relevant quantities. Our estimators are simple and computationally trivial and allow for potentially weak instruments.
