We identify the effects of monetary policy on credit risk-taking with an exhaustive credit
register of loan applications and contracts. We separate the changes in the composition of the
supply of ...credit from the concurrent changes in the volume of supply and quality and volume
of demand. We employ a two-stage model that analyzes the granting of loan applications in
the first stage and loan outcomes for the applications granted in the second stage, and that
controls for both observed and unobserved, time-varying, firm and bank heterogeneity through
time*firm and time*bank fixed effects. We find that a lower overnight interest rate induces
lowly capitalized banks to grant more loan applications to ex-ante risky firms and to commit
larger loan volumes with fewer collateral requirements to these firms, yet with a higher expost likelihood of default. A lower long-term interest rate and other relevant macroeconomic
variables have no such effects.
To study the impact of macroprudential policy on credit supply cycles and real effects, we analyze dynamic provisioning. Introduced in Spain in 2000, revised four times, and tested in its ...countercyclicality during the crisis, it affected banks differentially. We find that dynamic provisioning smooths credit supply cycles and, in bad times, supports firm performance. A 1 percentage point increase in capital buffers extends credit to firms by 9 percentage points, increasing firm employment (6 percentage points) and survival (1 percentage point). Moreover, there are important compositional effects in credit supply related to risk and regulatory arbitrage by nonregulated and regulated but less affected banks.
WHEN CREDIT DRIES UP Bentolila, Samuel; Jansen, Marcel; Jiménez, Gabriel
Journal of the European Economic Association,
06/2018, Letnik:
16, Številka:
3
Journal Article
Recenzirano
Odprti dostop
We study whether the solvency problems of Spain’s weakest banks in the Great Recession have caused employment losses outside the financial sector. Our analysis focuses on the set of banks that were ...bailed out by the Spanish authorities. Data from the credit register of the Bank of Spain indicate that these banks curtailed lending well in advance of their bailout. We show the existence of a credit supply shock, controlling for unobserved heterogeneity through firm fixed effects, and assess its impact on employment. To this aim, we compare the changes in employment between 2006 and 2010 at client firms of weak banks to those at comparable firms with no significant precrisis relationship to weak banks. Our estimates imply that around 24% of job losses at firms attached to weak banks in our sample are due to this exposure. This accounts for one-half of the employment losses at firms that survived and one-third of employment losses at those that closed down.
We analyze the impact of monetary policy on the supply of bank credit. Monetary policy affects both loan supply and demand, thus making identification a steep challenge. We therefore analyze a novel, ...supervisory dataset with loan applications from Spain. Accounting for time-varying firm heterogeneity in loan demand, we find that tighter monetary and worse economic conditions substantially reduce loan granting, especially from banks with lower capital or liquidity ratios; responding to applications for the same loan, weak banks are less likely to grant the loan. Finally, firms cannot offset the resultant credit restriction by applying to other banks.
We study bank credit booms, exploiting the Spanish matched credit register over 2001-2009. We extend Khwaja and Mian (2008)’s loan-level estimator by incorporating firm-level general equilibrium ...adjustments. Higher ex-ante bank real-estate exposure increases credit supply to non-real-estate firms, but effects are neutralized by firm-level adjustments for firms with existing banking relationships. However, higher bank real-estate exposure increases risk-taking, by relaxing standards of existing borrowers (cheaper, longer-term and less collateralized credit), and by expanding credit on the extensive margin to first-time borrowers that default substantially more. Results suggest that the mechanism at work is greater liquidity via securitization of real-estate assets
Existing computational approaches have not yet resulted in effective and efficient computer-aided tools that are used in pathologists' daily practice. Focusing on a computer-based qualification for ...breast cancer diagnosis, the present study proposes two deep learning architectures to efficiently and effectively detect and classify mitosis in a histopathological tissue sample. The first method consists of two parts, entailing a preprocessing of the digital histological image and a free-handcrafted-feature Convolutional Neural Network (CNN) used for binary classification. Results show that the methodology proposed can achieve 95% accuracy in testing, with an F1-score of 94.35%. This result is higher than the results using classical image processing techniques and also higher than the approaches combining CCNs with handcrafted features. The second approach is an end-to-end methodology using semantic segmentation. Results showed that this algorithm can achieve an accuracy higher than 95% in testing and an average Dice index of 0.6, higher than the existing results using CNNs (0.9 F1-score). Additionally, due to the semantic properties of the deep learning approach, an end-to-end deep learning framework is viable to perform both tasks: detection and classification of mitosis. The results show the potential of deep learning in the analysis of Whole Slide Images (WSI) and its integration to computer-aided systems. The extension of this work to whole slide images is also addressed in the last sections; as well as, some computational key points that are useful when constructing a computer-aided-system inspired by the proposed technology.
In the present paper a techno-economic hydrogen production and transportation costs to export from Colombia to Europe and Asia were determined using the open-source Python tools, such as ...WindPowerLIB, PVLIB, ERA5 weather data, and the Hydrogen-2-Central (H2C) model. Calculations were performed as well for Chile, for comparison as a regional competitor. In addition, a detailed overview of Colombia's energy system and national efforts for a market ramp-up of renewable energy and hydrogen is provided. The application of the model in different scenarios shows Colombia's potential to produce green hydrogen using renewable energies. The prices estimated are 1.5 and 1.02 USD/kgH2 for 2030 and 2050 with wind power, and 3.24 and 1.65 USD/kgH2 for 2030 and 2050 using solar energy. Colombia can become one of the most promising hydrogen suppliers to Asian and European countries with one of the lowest prices in the production and transportation of green hydrogen.
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•Open-source models were used to obtain costs of H2 production and transportation.•LCOH of green H2 using wind energy is 1.63 and 1.11 USD/kgH2 by 2030 and 2050.•LCOH of green H2 using solar energy is 3.72 and 1.89 USD/kgH2 by 2030 and 2050.•Exporting H2 to Asia by 2030 and 2050 costs 3.47 and 2.9 USD/kg, respectively.•Exporting H2 to Europe by 2030 and 2050 costs 3.1 and 2.55 USD/kg, respectively.
How does competition affect bank risk-taking? Jiménez, Gabriel; Lopez, Jose A.; Saurina, Jesús
Journal of financial stability,
June 2013, 2013-6-00, Letnik:
9, Številka:
2
Journal Article
Recenzirano
A common assumption in the academic literature and in the supervision of banking systems is that franchise value plays a key role in limiting bank risk-taking. As market power is the primary source ...of franchise value, reduced competition in banking markets has been seen as promoting banking stability. A recent paper by Martínez-Miera and Repullo (MMR, 2010) shows that a nonlinear relationship theoretically exists between bank competition and risk-taking in the loan market. We test this hypothesis using data from the Spanish banking system. After controlling for macroeconomic conditions and bank characteristics, we find support for this nonlinear relationship using standard measures of market concentration in both the loan and deposit markets. When direct measures of market power, such as Lerner indices, are used, the empirical results are more supportive of the original franchise value hypothesis, but only in the loan market. Overall, the results highlight the empirical relevance of the MMR model, even though further analysis across other banking markets is needed.
Low phosphate (Pi) availability constrains plant development and seed production in both natural and agricultural ecosystems. When Pi is scarce, modifications of root system architecture (RSA) ...enhance the soil exploration ability of the plant and lead to an increase in Pi uptake. In Arabidopsis, an iron-dependent mechanism reprograms primary root growth in response to low Pi availability. This program is activated upon contact of the root tip with low-Pi media and induces premature cell differentiation and the arrest of mitotic activity in the root apical meristem, resulting in a short-root phenotype. However, the mechanisms that regulate the primary root response to Pilimiting conditions remain largely unknown. Here we report on the isolation and characterization of two low-Pi insensitive mutants (lpi5 and lpi6), which have a long-root phenotype when grown in low-Pi media. Cellular, genomic, and transcriptomic analysis of low-Pi insensitive mutants revealed that the genes previously shown to underlie Arabidopsis Al tolerance via root malate exudation, known as SENSITIVE TO PROTON RHIZOTOXICITY (STOP1) and ALUMINUM ACTIVATED MALATE TRANSPORTER 1 (ALMT1), represent a critical checkpoint in the root developmental response to Pi starvation in Arabidopsis thaliana. Our results also show that exogenous malate can rescue the long-root phenotype of lpi5 and lpi6. Malate exudation is required for the accumulation of Fe in the apoplast of meristematic cells, triggering the differentiation of meristematic cells in response to Pi deprivation.
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