Determinants and Valuation Effects of the Home Bias in European Bankss Sovereign Debt Portfolios

2015 ◽  
Author(s):  
BBlint L Horvvth ◽  
Harry Huizinga ◽  
Vasso Ioannidou
Keyword(s):  
Sovereign Debt ◽  
Home Bias ◽  
Valuation Effects ◽  
Debt Portfolios

scholarly journals International Evidence on the Determinants of Domestic Sovereign Debt Bank Holdings

2019 ◽  
Vol 58 (2-3) ◽  
pp. 143-160
Author(s):  
Dimitris K. Chronopoulos ◽  
George Dotsis ◽  
Nikolaos T. Milonas
Keyword(s):  
Sovereign Debt ◽  
Home Bias ◽  
Government Ownership ◽  
Government Bonds ◽  
Bank Ownership ◽  
Specific Factors ◽  
Quality Of Governance ◽  
Domestic Banks ◽  
Country Specific

Abstract In this paper, we examine the determinants of bank holdings of domestic sovereign debt with a panel dataset of 295 banks in 35 countries between 2002 and 2013. The findings indicate that the structure of bank ownership (domestic, foreign, or government ownership), the quality of governance, and the level of financial development of the countries in which banks operate all determine the level of home bias. Specifically, we find that domestic banks tend to hold more domestic sovereign debt relative to their foreign counterparts. We also provide evidence that home bias is even stronger when the domestic bank is controlled by its government. Moreover, home bias increases when government bonds are more risky, home governments are less effective, and when banking systems are less financially developed. Overall, we find that banks’ home bias in holding sovereign debt is an international phenomenon that is determined by both bank- and country-specific factors.

Sovereign Debt Portfolios, Bond Risks, and the Credibility of Monetary Policy

2020 ◽  
Vol 75 (6) ◽  
pp. 3097-3138
Author(s):  
WENXIN DU ◽  
CAROLIN E. PFLUEGER ◽  
JESSE SCHREGER
Keyword(s):  
Monetary Policy ◽  
Sovereign Debt ◽  
Debt Portfolios

scholarly journals Increase in Home Bias and the Eurozone Sovereign Debt Crisis

2014 ◽  
Author(s):  
Camille Cornand ◽  
Pauline Gandrr ◽  
CCline Gimet
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Home Bias ◽  
Sovereign Debt Crisis

scholarly journals Bailouts, moral hazard and banks׳ home bias for Sovereign debt

2016 ◽  
Vol 81 ◽  
pp. 70-85 ◽  
Author(s):  
Gaetano Gaballo ◽  
Ariel Zetlin-Jones
Keyword(s):  
Moral Hazard ◽  
Sovereign Debt ◽  
Home Bias
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