(Ελληνικά) Σεμινάριο: Strategic Behavior on Loans: Evidence from Greece

03-07-19 web.xrh 0 comment

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Στα πλαίσια του διδακτορικού μας σεμιναρίου, ο υποψήφιος διδάκτορας Διονύσιος Μυλωνάς θα παρουσιάσει την πρόοδο της διδακτορικής του μελέτης, την προσεχή Πέμπτη  04/07 στις 17:00, στην αίθουσα 306.

Το θέμα της ομιλίας είναι: “Strategic Behavior on Loans: Evidence from Greece

Abstract

In this paper, we investigate the effect of resolution measures for weak banks on borrower’s behavior towards default. In addition, we investigate borrower’s behavior in relation to leverage and the potential debt relief. We are able to examine this using a comprehensive and unique dataset of Greek commercial banks loan portfolios that contains 22 million of loans contracts (mortgage, consumer, credit cards and SMEs) that covers more than 80% of the respective loan market share. We find that prudential measures towards the resolution of weak banks via the merge with strong banks have positive effects in term of probability of default to the overall financial stability of banking system. In addition, our results indicate borrower’s willingness to default increases under the expectation of debt relief either via a debt restructuring, after controlling for other known determinants. These findings can serve as guidance for policy measures that can mitigate the risk of borrowers’ probability default and provide guidance to respective macro policy actions.