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Vives, Xavier - 2010

competition and stability in banking. There are two basic channels through which competition may increase instability: by … incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

Persistent link: https://www.econbiz.de/10003967776

Banking crises

Grossman, Richard S. - 2016

Financial crises have been a common feature of the economic landscape for more than two centuries. The chapter defines banking crises, considers the type of costs that they impose, and outlines the most common causes of banking crises during the past 200 years. The remainder of the chapter...

Persistent link: https://www.econbiz.de/10011475039

Systemic risk and the great depression

Das, Sanjiv R.; Mitchener, Kris; Vossmeyer, Angela - 2018

We employ a unique hand-collected dataset and a novel methodology to examine systemic risk before and after the largest U.S. banking crisis of the 20th century. Our systemic risk measure captures both the credit risk of an individual bank as well as a bank's position in the network. We construct...

Persistent link: https://www.econbiz.de/10011952053

Banking panics and liquidity in a monetary economy

Matsuoka, Tarishi; Watanabe, Makoto - 2017

This paper studies banks' liquidity provision in the Lagos and Wright model of monetary exchanges. With aggregate uncertainty we show that banks sometimes exhaust their cash reserves and fail to satisfy their depositors' need of consumption smoothing. The banking panics can be eliminated by the...

Persistent link: https://www.econbiz.de/10011747458

Banking supervision in integrated financial markets : implications for the EU

Stolz, Stéphanie Marie - 2002

I analyze the optimal design of banking supervision in the presence of cross-border lending. Cross-border lending could imply that an individual bank failure in one country could trigger negative spillover effects in another country. Such cross-border contagion effects could turn out to be...

Persistent link: https://www.econbiz.de/10011514035

Unemployment and finance : how do financial and labour market factors interact?

Gatti, Donatella; Rault, Christophe; Vaubourg, Anne-Gaël - 2009

Using annual data for 18 OECD countries over the period 1980-2004, we investigate how labour and financial factors interact to determine unemployment by estimating a dynamic panel model using the system generalized method of moments (GMM). We show that the impact of financial variables depends...

Persistent link: https://www.econbiz.de/10003923648

The political economy of financial systems : evidence from suffrage reforms in the last two centuries

Degryse, Hans; Lambert, Thomas; Schwienbacher, Armin - 2013 - This version: August 23, 2013

Initially, voting rights were limited to wealthy elites providing political support for stock markets. The franchise expansion induces the median voter to provide political support for banking development as this new electorate has lower financial holdings and benefits less from the uncertainty...

Persistent link: https://www.econbiz.de/10010223450

Financial system architecture and the patterns of international trade

Amissah, Emmanuel Bentum; Bougheas, Spiros P.; Defever, … - 2016

Countries differ on the extent to which their financial system relies on banks or on the financial market. We offer a model featuring a possible two way relationship between countries' financial system architecture and their comparative advantage. Countries specialising in bank dependent sectors...

Persistent link: https://www.econbiz.de/10011492076

Asymmetric monetary transmission in EMU : the robustness of VAR conclusions and Cecchettis̕ legal family theory

Elbourne, Adam (contributor); Haan, Jakob de (contributor) - 2004

We review studies on monetary transmission in the EU countries using the VAR approach and analyse why they often lead to divergent outcomes. Firstly, we estimate 43 VAR models across ten EU countries and compare the robustness of the ranking of the magnitudes of the price and output responses....

Persistent link: https://www.econbiz.de/10002521661

The nature of financial and real business cycles : the great moderation and banking sector pro-cyclicality

Égert, Balázs; Sutherland, Douglas - 2012

This paper takes a fresh look at the nature of financial and real business cycles in OECD countries using annual data series and shorter quarterly and monthly economic indicators. It first analyses the main characteristics of the cycle, including the length, amplitude, asymmetry and changes of...

Persistent link: https://www.econbiz.de/10009540104