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Bank Ownership, Market Structure and Risk

Nicoló, Gianni De; Loukoianova, Elena - International Monetary Fund (IMF) - 2007

relationship between banks' risk of failure, market structure, bank ownership, and banks' screening and bankruptcy costs. These … model rationalizes this evidence if both state-owned and foreign banks have either larger screening and/or lower bankruptcy … costs than private domestic banks, banks' differences in market shares, screening or bankruptcy costs are not too large, and …

Persistent link: https://www.econbiz.de/10005826093

The Use (and Abuse) of CDS Spreads During Distress

Spackman, Carolyne; Singh, Manmohan - International Monetary Fund (IMF) - 2009

Credit Default Swap spreads have been used as a leading indicator of distress. Default probabilities can be extracted from CDS spreads, but during distress it is important to take account of the stochastic nature of recovery value. The recent episodes of Landbanski, WAMU and Lehman illustrate...

Persistent link: https://www.econbiz.de/10005826491

Making OTC Derivatives Safe; A Fresh Look

Singh, Manmohan - International Monetary Fund (IMF) - 2011

Recent regulatory efforts, especially in the U.S. and Europe, are aimed at reducing moral hazard so that the next financial crisis is not bailed out by tax payers. This paper looks at the possibility that central counterparties (CCPs) may be too-big-to-fail entities in the making. The present...

Persistent link: https://www.econbiz.de/10008876583

Macroprudential Regulation Under Repo Funding

Valderrama, Laura - International Monetary Fund (IMF) - 2010

may lead to the bankruptcy of its repo counterparties triggering contagion across asset classes. To buttress the …

Persistent link: https://www.econbiz.de/10008671292

Approaches to Corporate Debt Restructuring in the Wake of Financial Crises

Laryea, Thomas - International Monetary Fund (IMF) - 2010

This paper starts from a discussion of the economic case for moderated government intervention in debt restructuring in the nonfinancial corporate sector. It then draws on lessons from past crises to explain three broad approaches that have been applied to corporate debt restructurings in the...

Persistent link: https://www.econbiz.de/10010790467

Bank Resolution Costs, Depositor Preference, and Asset Encumbrance

Hardy, Daniel C. - International Monetary Fund (IMF) - 2013

that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank …

Persistent link: https://www.econbiz.de/10011123844

Bank Funding Structures and Risk; Evidence From the Global Financial Crisis

Federico, Pablo; Vázquez, Francisco F. - International Monetary Fund (IMF) - 2012

This paper analyzes the evolution of bank funding structures in the run up to the global financial crisis and studies the implications for financial stability, exploiting a bank-level dataset that covers about 11,000 banks in the U.S. and Europe during 2001?09. The results show that banks with...

Persistent link: https://www.econbiz.de/10009650626

Bankruptcy and Firm Dynamics; The Case of the Missing Firms

Rodríguez-Delgado, Jose Daniel - International Monetary Fund (IMF) - 2010

Financial frictions have been documented as an important determinant of firm dynamics. In this paper I model bankruptcy … a model of firm dynamics that generate endogenous borrowing limits and I find that a) inefficient bankruptcy procedures …

Persistent link: https://www.econbiz.de/10008519503

The Need for Special Resolution Regimes for Financial Institutions; The Case of theeuropean Union

Cihák, Martin; Nier, Erlend - International Monetary Fund (IMF) - 2009

The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed...

Persistent link: https://www.econbiz.de/10008528635

Counterparty Risk, Impacton Collateral Flows and Role for Central Counterparties

Aitken, James; Singh, Manmohan - International Monetary Fund (IMF) - 2009

Counterparty risk in the United States stemming from exposures to OTC derivatives payables (after netting) is now concentrated in five banks?Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley and Citi. This note analyzes how such risks have shifted over the past year. We estimate that the...

Persistent link: https://www.econbiz.de/10008528640