Financial Intermediation as a Beliefs-Bridge between Optimists and Pessimists ¤

By Joshua D. Coval, Anjan V. Thakor. 2004

311 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/1a3b97890023eeb14af8de2e57a42ad7ee8a17d5

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Citations in the corpus

Relationship Banking, Fragility, and the Asset-Liability Matching Problem (2007, methodology): “It is interesting that the potential divergence of beliefs about project values can lead not only to the raison d’ˆetre for the emergence of banks [ Coval and Thakor (2005) ] and predictions about the borrower’s choice of bank versus capital market financing [Allen and Gale (1999)], but also to the ”
Bank Risk Taking and Liquidity Creation Following Regulatory Interventions and Capital Support (2011, unknown): “(2004); von Thadden (2004); Coval and Thakor (2005)), so higher capital ratios may allow banks to create more liquidity.”
How Does Capital Affect Bank Performance During Financial Crises (2013, unknown): “In the screening-based theory of Coval and Thakor (2005), a minimum amount of capital is essential to the very viability of the bank.”
Overconfidence, Compensation Contracts, and Capital Budgeting (2011, methodology): “In what follows, we describe the project, the information technology used to assess the project’s value, the compensation contract offered by the firm, and the manager’s preferences and overconfidence.”
Fintech and banking: What do we know? (2019, unknown): “• Screening (Ramakrishnan and Thakor, 1984; Millon and Thakor, 1985; Coval and Thakor, 2005).”
Bank Capital, Liquidity Creation and Deposit Insurance (2016, unknown): “As argued under the “risk absorption” hypothesis (e.g. Bhattacharya and Thakor 1993, Repullo 2004, Von Thadden 2004, Coval and Thakor 2005), it is important to appropriately control for bank risk as the main reason for banks to hold capital is to be able to absorb risk.”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “In Ramakrishnan and Thakor’s (1984) theory of financial intermediation, a raison d’etre for banks is specialization in screening borrowers with a priori unknown default risk (see also Allen 1990; Bhattacharya and Thakor 1993; Coval and Thakor 2005; Millon and Thakor 1985).”
OVERCONFIDENCE, CEO SELECTION, AND CORPORATE GOVERNANCE (2008, unknown): “…(1998) and Van Den Steen (2004)), rank-order tournaments (e.g., Lazear and Rosen (1981) and Ramakrishnan and Thakor (1991)), overconfidence (e.g., Coval and Thakor (2005) and Gervais, Heaton, and Odean (2007)), the survival of overconfident agents (e.g., Kyle and Wang (1997), Van Den Steen…”
Bank Capital and Financial Stability: An Economic Trade-Off or a Faustian Bargain? (2014, background): “Capital absorbs risk and expands banks’ risk-bearing capacity (e.g., Bhattacharya & Thakor 1993, Repullo 2004, Coval & Thakor 2005).”