On the impact of leveraged buyouts on bank systemic risk
- Although banks are at the center of systemic risk, there are other institutions that contribute to it. With the publication of the leveraged lending guideline in March 2013, the U.S. regulators show that they are especially worried about the private equity firms with their high-risk deals. Given these risks and the interconnectedness of the banks through the LBO loan syndicates, I shed light on the impact of a bank’s LBO loan exposure on its systemic risk. By using 3,538 observations between 2000 and 2013 from 165 global banks, I show that banks with higher LBO exposure also have a higher level of systemic risk. Other loan purposes do not show this positive relationship. The main drivers influencing this relationship positively are the bank’s interconnectedness to other LBO financing banks and its size. Lending experience with a specific PE sponsor, experience with leading LBO syndicates or a bank’s credit rating, however, lead to a lower impact of the LBO loan exposure on systemic risk.
Verfasserangaben: | Marcel Grupp |
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URN: | urn:nbn:de:hebis:30:3-374466 |
URL: | http://ssrn.com/abstract=2602220 |
DOI: | https://doi.org/10.2139/ssrn.2602220 |
Titel des übergeordneten Werkes (Englisch): | SAFE working paper series ; No. 101 |
Schriftenreihe (Bandnummer): | SAFE working paper (101) |
Verlag: | SAFE |
Verlagsort: | Frankfurt am Main |
Dokumentart: | Arbeitspapier |
Sprache: | Englisch |
Datum der Veröffentlichung (online): | 05.05.2015 |
Datum der Erstveröffentlichung: | 05.05.2015 |
Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Datum der Freischaltung: | 19.05.2015 |
Freies Schlagwort / Tag: | Leveraged buyouts; syndicated loans; systemic risk |
Ausgabe / Heft: | This version: April 2015 |
Seitenzahl: | 35 |
HeBIS-PPN: | 359592848 |
Institute: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Lizenz (Deutsch): | Deutsches Urheberrecht |