Showing 1 - 6 of 6
A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The authors reviews the two basic methodologies adopted in cross-country empirical studies-the signals approach and the multivariate probability model-and their application...
Persistent link: https://www.econbiz.de/10012554176
, recapitalizations, and nationalizations affect banking competition. This debate is important because the pricing of banking products has …, and the competitive response also cannot be explained by alternative forces. The competition-increasing effect on Lerner … architecture across countries. (ii) Consistent with theoretical predictions, the competition-increasing effect of government …
Persistent link: https://www.econbiz.de/10012559445
The authors show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals. Systemic risk can affect market discipline both regardless of and through bank fundamentals. First, worsening systemic conditions...
Persistent link: https://www.econbiz.de/10012559876
While the first two pillars of the European Banking Union have been implemented, a European deposit insurance scheme (EDIS) is still not in place. To facilitate its introduction, recent proposals argue in favor of a reinsurance scheme. In this paper, we use a regime-switching open-economy DSGE...
Persistent link: https://www.econbiz.de/10012223907
Recent proposals for a still missing European deposit insurance scheme (EDIS) argue in favor of a reinsurance framework. In this paper, we use a regime-switching open-economy DSGE model with bank default to assess the relative efficiency of such a scheme. We find that reinsurance by EDIS is more...
Persistent link: https://www.econbiz.de/10014316943
This paper analyzes the causal relationship between institutional diversity in domestic banking sectors and bank stability. We use a large bank- and country-level unbalanced panel data set covering the EU member states' banking sectors between 1998 and 2014. Constructing two distinct indicators...
Persistent link: https://www.econbiz.de/10012215264