Dario Focarelli - Academia.edu (original) (raw)
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Papers by Dario Focarelli
Social Science Research Network, 2002
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Social Science Research Network, 2002
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This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted: a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans to firms in financial difficulties into bonds marketed to unsuspecting clients (the ‘naïve investor ’ hypothesis). The empirical analysis compares the default rates between 2000 and 2002 of a sample of more than 5,000 securities issued from 1991 to 1999. Our results show that, on average, securities underwritten by investment houses and by commercial banks had the same probability of default. However, investment-grade issues underwritten by commercial banks had a lower probability of default than those underwritten by investment houses, while the reverse was true for non-investment-gr...
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SSRN Electronic Journal, 2002
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SSRN Electronic Journal, 2010
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Journal of Banking & Finance, 2008
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Palgrave Macmillan UK eBooks, 2018
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Banking Crises, 2016
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Economia Dei Servizi, 2013
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This paper analyses the performance of the international insurance industry during the financial ... more This paper analyses the performance of the international insurance industry during the financial crisis and examines the importance of insurance to systemic financial market stability, emphasizing the need for correct assessment of the characteristics of insurance companies, such as their relative immunity to runs, their extremely low level of short-term financial debt, and their absence from the interbank market. The increasing participation of the insurance companies in the financial markets, recently emphasized by Trichet (2009), makes the debate on how regulation might dampen the natural pro-cyclicality of the financial sector extremely relevant for the insurance industry. Against this background, the paper describes the innovative provisions of the European Solvency II Directive approved in 2009, but proper evaluation of its effectiveness will have to wait until the implementing measures are known.
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The New Palgrave Dictionary of Economics, 2012 Version, 2012
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The New Palgrave Dictionary of Economics, 2008
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This paper investigates the determinants of the pattern of banks' foreign investment. We exte... more This paper investigates the determinants of the pattern of banks' foreign investment. We extended previous analyses in three directions. First, we use a unique database that includes information on 260 large banks from OECD countries and all their foreign branches and subsidiaries in each one of the other OECD countries. Second, we consider explicitly the role of institutional and regulatory
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Bank lending expanded rapidly in Italy in the second half of the 1980s and early 1990s. By contra... more Bank lending expanded rapidly in Italy in the second half of the 1980s and early 1990s. By contrast, in the four years 1993-96 it rose moderately, and in real terms it diminished. The paper addresses some questions in the light of these trends: Was there a structural change in firms’ demand for credit after 1993? Are there systematic differences in
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This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted; a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans
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The general conclusion of the empirical literature is that in-market consolidation generates adve... more The general conclusion of the empirical literature is that in-market consolidation generates adverse price changes, harming consumers. Previous studies, however, look only at the short-run pricing impact of consolidation, ignoring all effects that take longer to materialize. Using a database that includes detailed information on the deposit rates of individual banks in local markets for different categories of depositors, we
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Social Science Research Network, 2002
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Social Science Research Network, 2002
Bookmarks Related papers MentionsView impact
This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted: a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans to firms in financial difficulties into bonds marketed to unsuspecting clients (the ‘naïve investor ’ hypothesis). The empirical analysis compares the default rates between 2000 and 2002 of a sample of more than 5,000 securities issued from 1991 to 1999. Our results show that, on average, securities underwritten by investment houses and by commercial banks had the same probability of default. However, investment-grade issues underwritten by commercial banks had a lower probability of default than those underwritten by investment houses, while the reverse was true for non-investment-gr...
Bookmarks Related papers MentionsView impact
Bookmarks Related papers MentionsView impact
SSRN Electronic Journal, 2002
Bookmarks Related papers MentionsView impact
SSRN Electronic Journal, 2010
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Journal of Banking & Finance, 2008
Bookmarks Related papers MentionsView impact
Bookmarks Related papers MentionsView impact
Palgrave Macmillan UK eBooks, 2018
Bookmarks Related papers MentionsView impact
Banking Crises, 2016
Bookmarks Related papers MentionsView impact
Economia Dei Servizi, 2013
Bookmarks Related papers MentionsView impact
Bookmarks Related papers MentionsView impact
This paper analyses the performance of the international insurance industry during the financial ... more This paper analyses the performance of the international insurance industry during the financial crisis and examines the importance of insurance to systemic financial market stability, emphasizing the need for correct assessment of the characteristics of insurance companies, such as their relative immunity to runs, their extremely low level of short-term financial debt, and their absence from the interbank market. The increasing participation of the insurance companies in the financial markets, recently emphasized by Trichet (2009), makes the debate on how regulation might dampen the natural pro-cyclicality of the financial sector extremely relevant for the insurance industry. Against this background, the paper describes the innovative provisions of the European Solvency II Directive approved in 2009, but proper evaluation of its effectiveness will have to wait until the implementing measures are known.
Bookmarks Related papers MentionsView impact
Bookmarks Related papers MentionsView impact
The New Palgrave Dictionary of Economics, 2012 Version, 2012
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The New Palgrave Dictionary of Economics, 2008
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This paper investigates the determinants of the pattern of banks' foreign investment. We exte... more This paper investigates the determinants of the pattern of banks' foreign investment. We extended previous analyses in three directions. First, we use a unique database that includes information on 260 large banks from OECD countries and all their foreign branches and subsidiaries in each one of the other OECD countries. Second, we consider explicitly the role of institutional and regulatory
Bookmarks Related papers MentionsView impact
Bank lending expanded rapidly in Italy in the second half of the 1980s and early 1990s. By contra... more Bank lending expanded rapidly in Italy in the second half of the 1980s and early 1990s. By contrast, in the four years 1993-96 it rose moderately, and in real terms it diminished. The paper addresses some questions in the light of these trends: Was there a structural change in firms’ demand for credit after 1993? Are there systematic differences in
Bookmarks Related papers MentionsView impact
This paper presents some new evidence on the conflict of interest that may arise when banks under... more This paper presents some new evidence on the conflict of interest that may arise when banks underwrite corporate securities and sell them to their customers. Two alternative views are confronted; a) that commercial banks possess private information on the financial condition of their clients and so perform better screening (the certification hypothesis); and b) that commercial banks might convert loans
Bookmarks Related papers MentionsView impact
The general conclusion of the empirical literature is that in-market consolidation generates adve... more The general conclusion of the empirical literature is that in-market consolidation generates adverse price changes, harming consumers. Previous studies, however, look only at the short-run pricing impact of consolidation, ignoring all effects that take longer to materialize. Using a database that includes detailed information on the deposit rates of individual banks in local markets for different categories of depositors, we
Bookmarks Related papers MentionsView impact