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We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks … Canadian banks. The banking sector in Canada provides a unique setting in which to examine market discipline along with the … prospects of proposed reforms, because Canada has no history of government bailouts. Our results suggest that large banks likely …
Persistent link: https://www.econbiz.de/10010723573
as a supplement to existing risk-weighted capital requirements. Canadian banks offer a useful case study in this respect … banks' leverage management. In contrast to a number of countries without regulatory constraints, leverage at major Canadian … banks was relatively stable leading up to the crisis, reducing pressure for deleveraging during the economic downturn …
Persistent link: https://www.econbiz.de/10008502640
This paper examines the major changes in the Canadian banking system since the Second World War, with special attention paid to the differences between Canadian and US developments over this period. An important difference between the countries is the nationwide branch banking arrangements in...
Persistent link: https://www.econbiz.de/10005673243
Since the financial crisis, attention has focused on central counterparties (CCPs) as a solution to systemic risk for a variety of financial markets, ranging from repurchase agreements and options to swaps. However, internationally accepted standards and the academic literature have left...
Persistent link: https://www.econbiz.de/10009323064
important additional indicators of distress of individual banks, or lack thereof than the CDSs. It therefore seems that central … banks should utilize high-frequency data on liquidity demand to obtain a better picture of financial health of individual …
Persistent link: https://www.econbiz.de/10009326649
the banks’ balance sheets. …
Persistent link: https://www.econbiz.de/10010691319
I study rollover risk in the wholesale funding market when intermediaries can hold liquidity ex ante and are subject to fire sales ex post. Precautionary liquidity restores multiple equilibria in a global rollover game. An intermediate liquidity level supports both the usual run equilibrium and...
Persistent link: https://www.econbiz.de/10010779301
be applied to larger banks, abstracting from other factors like interconnectedness. In this paper, the authors consider … centrality of banks in an interbank network is positively correlated with their size, then proxies of a bank’s systemic …
Persistent link: https://www.econbiz.de/10009364337
outcome of the interaction between market liquidity risk, solvency risk, and the funding structure of banks. To assess the …
Persistent link: https://www.econbiz.de/10008692892
. Specifically, we show that households whose banks were more exposed to funding shocks report significantly lower levels of non …
Persistent link: https://www.econbiz.de/10010762051