Showing papers by "James R. Barth published in 2011"
TL;DR: In this article, the authors investigated the impact of bank regulatory practices on credit lending to SMEs in transition economies and found that regulatory practices relevant to SME access to bank loans and their influence over loan structures are identified.
Abstract: This paper studies the financing status of small and medium enterprises (SMEs) in transition economies. Factors causing financing obstacles are indentified and further analyzed to determine their influence over financing patterns. Bank regulatory practices relevant to SMEs’ access to bank loans and their influence over loan structures are identified. This study contributes to the existing body of knowledge by exploring the impact of specific bank regulatory practices on credit lending to SMEs in transition economies.
39 citations
TL;DR: In this article, the authors examine the interdependencies between individual bank risk and the sovereign risk of the countries in which they are headquartered, with special emphasis on the recent global financial and eurozone crises.
Abstract: Purpose: The purpose of this paper is to discuss and then analyze the interdependency between bank and sovereign risk before, during and after the financial crisis. Design/methodology/approach: Our approach is based upon an examination of 44 large banks headquartered in 13 countries. Eight of these countries belong to the European Union, seven belong to the eurozone, and the remaining five belong to neither group. This provides a good comparison group of countries. Findings: We find evidence supporting the existence of significant bank and sovereign risk linkages. There are, however, different patterns in the relationships across countries and even across banks within the same country. Also, higher correlations between bank and sovereign risk are found in countries in which the ratio of the assets of banks relative to their home country’s GDP is relatively high.Research implications: Based upon our empirical results, allowing banks to invest in sovereign debt without requiring them to hold any capital against the “true” risk of such debt increases the likelihood of insolvency. This means that interdependencies between bank and sovereign risk are extremely important when setting regulatory capital requirements and considering whether action is needed to limit any increase in the likelihood of contagion. Originality/value: The paper provides a new examination of the interdependencies between individual bank risk and the sovereign risk of the countries in which they are headquartered, with special emphasis on the recent global financial and eurozone crises.
26 citations
TL;DR: The authors examines the exposure of banks around the world to Greek debt, and calls for swift and decisive action by policymakers to head off a global banking crisis, and concludes that "Greek debt may be relatively small, but a sufficient amount is held by a few major banks in Europe to cause disruptions to the credit system".
Abstract: Greece's debt-to-GDP ratio is reaching unsustainable levels. But why should the debt load of such a small country cause such outsized tremors in global financial markets?Greek debt may be relatively small, but a sufficient amount is held by a few major banks in Europe to cause disruptions to the credit system. This effect is magnified because other banks from around the world are exposed to these European banks, making the problem global.This timely report from the Milken Institute examines the exposure of banks around the world to Greek debt, and calls for swift and decisive action by policymakers to head off a global banking crisis.
12 citations
TL;DR: Greece's debt-to-GDP ratio is reaching unsustainable levels as discussed by the authors. But why should the debt load of such a small country cause such outsized tremors in global financial markets?
Abstract: Greece's debt-to-GDP ratio is reaching unsustainable levels. But why should the debt load of such a small country cause such outsized tremors in global financial markets? Greek debt may be relative...
5 citations
29 Nov 2011
1 citations