effective prudential supervision. In addition, our results indicate that insurance activities of banks may increase systemic …

systemic risk, including models for the three main channels of contagion: counterparty loss, overlapping portfolios and funding … channels of contagion, models with learning and limited deductive reasoning that can survive the Lucas critique, and practical … banks …

cost of borrowing of these countries on stock returns of banks from other countries. We find that tail sovereign GIIPS CDS … positive shocks, which creates moral hazard and is best explained by a “too-systemic-to-fail” effect. The contagion effects are … benchmark specification, holdings of peripheral country bonds by banks from other countries do not constitute a statistically or …

When settling their own liabilities and those of their clients, settlement banks rely on incoming payments to fund a …. Our estimates suggest that in normal times, banks increase their payment outflows when their liquidity is above target and … the time at which the bank’s counterparties would run out of liquidity if they followed their estimated normal …

liabilities (debts and assets) of the bank. This can also be seen in insurance. Banks face several risks such as the liquidity … to manage interest rate risk and liquidity risk faced by banks, other financial services companies and corporations. ALM …