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.

Caiazza, S., Cotugno, M., Fiordelisi, F., Stefanelli, V., The spillover effect of enforcement actions on bank risk-taking, <<JOURNAL OF BANKING & FINANCE>>, 2018; 91 (91): 146-159. [doi:10.1016/j.jbankfin.2018.04.008] [http://hdl.handle.net/10807/190182]

The spillover effect of enforcement actions on bank risk-taking

Cotugno, Matteo;
2018

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.
2018
Inglese
Caiazza, S., Cotugno, M., Fiordelisi, F., Stefanelli, V., The spillover effect of enforcement actions on bank risk-taking, <<JOURNAL OF BANKING & FINANCE>>, 2018; 91 (91): 146-159. [doi:10.1016/j.jbankfin.2018.04.008] [http://hdl.handle.net/10807/190182]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/190182
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