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We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined. We highlight how coordination failure between a bank's creditors and adverse selection in the secondary market for the bank's assets interact,...
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global expansion of banks, however, a natural byproduct of this strategy is increased risk, which can affect the internal and … affecting one area of risk can have ramifications and penetrations for a range of other categories of risks and can cause a … domino effect.Therefore, it is important to understand the risk faced by the international banks, as this understanding can …
Persistent link: https://www.econbiz.de/10013098297
The paper reports the outcome of the stress-testing of liquidity risk in the TARGET2 payment system, with the study …
Persistent link: https://www.econbiz.de/10012962520
: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …
Persistent link: https://www.econbiz.de/10012900225
: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …
Persistent link: https://www.econbiz.de/10012929553
Persistent link: https://www.econbiz.de/10012654987
Does higher policy uncertainty lead to higher financial risk for sure? This study shows an opposite evidence. Based on … large negative impact on the bank systemic risk, and the effect is more pronounced for small and unprofitable banks. Further … analysis shows that the decline in bank systemic risk is due to the lower similarity of asset and liability structure between …
Persistent link: https://www.econbiz.de/10013314435