Caiazza, Stefano and Cotugno, Matteo and Fiordelisi, Franco and Stefanelli, Valeria (2018) 'The spillover effect of enforcement actions on bank risk-taking.' Journal of Banking and Finance, 91. 146 - 159. ISSN 0378-4266

Preview

Text JBF_paper_all_2018_02_18.output.pdf - Accepted Version Download (702kB) | Preview

Abstract

Enforcement actions (sanctions) aim to penalize guilty companies and provide examples to other companies that bad behavior will be penalized. A handful of papers analyze the consequences of sanctions in banking for sanctioned companies, while no papers have investigated the spillover effects on non-sanctioned banks. Focusing on credit-related sanctions, we show the existence of a spillover effect: non-sanctioned banks behave similar to sanctioned banks, depending on their degree of similarity, offloading problematic loans and reducing their lending activity.

Item Type:	Article
Uncontrolled Keywords:	Enforcement action, Banking, Credit, Spillover effect
Divisions:	Faculty of Social Sciences > Essex Business School Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User:	Elements
Date Deposited:	22 Nov 2019 09:57
Last Modified:	22 Nov 2019 10:15
URI:	http://repository.essex.ac.uk/id/eprint/25995

Actions (login required)

View Item