The Bright Side of Transparency: Evidence from Supervisory Capital Requirements
| Autor: | Livia Amato, Ixart Miquel-Flores, Quentin Vandeweyer, Nordine Abidi |
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| Rok vydání: | 2021 |
| Předmět: |
History
Polymers and Plastics Transparency (market) media_common.quotation_subject Financial integration Financial system Industrial and Manufacturing Engineering Credit rating Bond valuation Debt Multiple time dimensions Capital requirement Business Business and International Management Private information retrieval media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3866364 |
| Popis: | Should regulators disclose private information about the creditworthiness of the companies it supervises? This paper exploits a change in the disclosure policy of the European Central Bank (ECB) in 2020 to make progress on this question. We compare European banks along multiple dimensions before and after the ECB published for the first time bank-by-bank information on Pillar 2 requirements (P2R). We show that bond prices and cross-border holdings of debt securities are sensitive to new regulatory information as well as to rating gaps between the ECB and private credit rating agencies. Overall, our results support the view that supervisors have specific, distinctive, and valuable knowledge of the banks they supervise. |
| Databáze: | OpenAIRE |
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