Direct Lending Shadow Banking Risk: Consequences of Commercial Banks Retreatment from European Middle Market

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F23%3A%230001022" target="_blank" >RIV/04274644:_____/23:#0001022 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.33422/eje.v3i1.415" target="_blank" >https://doi.org/10.33422/eje.v3i1.415</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.33422/eje.v3i1.415" target="_blank" >10.33422/eje.v3i1.415</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Direct Lending Shadow Banking Risk: Consequences of Commercial Banks Retreatment from European Middle Market

Popis výsledku v původním jazyce

The regional bank consolidation in the 1990 and the global financial crisis 2008-2009 reshaped the global credit market broadly. This paper analyzes potential direct lending risks based on the commercial banks retreatment from the European middle market loan segment. Fundamental characteristics of the private debt market development, like the intensified competition for deals, yield compression and deterioration of creditor protections and the potential shadow banking risks are analyzed. Furthermore, the lack of market information, delayed valuations and varying investment volumes are discussed in the context of challenging monitoring. In the conclusion the paper explains the importance for the European regulators to prepare for a drawdown of the private debt market, via three lines of defense to take care of the underwriting process, monitoring loans and restructuring expertise. Finally, the paper recommends conducting research on the European private debt deal structure and underlying investments for a regulatory monitoring

Název v anglickém jazyce

Direct Lending Shadow Banking Risk: Consequences of Commercial Banks Retreatment from European Middle Market

Popis výsledku anglicky

The regional bank consolidation in the 1990 and the global financial crisis 2008-2009 reshaped the global credit market broadly. This paper analyzes potential direct lending risks based on the commercial banks retreatment from the European middle market loan segment. Fundamental characteristics of the private debt market development, like the intensified competition for deals, yield compression and deterioration of creditor protections and the potential shadow banking risks are analyzed. Furthermore, the lack of market information, delayed valuations and varying investment volumes are discussed in the context of challenging monitoring. In the conclusion the paper explains the importance for the European regulators to prepare for a drawdown of the private debt market, via three lines of defense to take care of the underwriting process, monitoring loans and restructuring expertise. Finally, the paper recommends conducting research on the European private debt deal structure and underlying investments for a regulatory monitoring

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50200 - Economics and Business

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

European Journal of Economics

ISSN

2669-2384

e-ISSN

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Svazek periodika

3

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

13-27

Kód UT WoS článku

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EID výsledku v databázi Scopus

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