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Interbank contagion at work: evidence from a natural experiment

Iyer, Rajkamal; Peydró, José-Luis - European Central Bank - 2010

This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden shock caused by a large-bank failure in conjunction with detailed data on interbank exposures. First, we find robust evidence that higher interbank exposure to the failed bank...

Persistent link: https://www.econbiz.de/10008545907

Deposit insurance, moral hazard and market monitoring

Gropp, Reint; Vesala, Jukka - European Central Bank - 2004

The paper analyses the relationship between deposit insurance, debt-holder monitoring, and risk taking. In a stylised banking model we show that deposit insurance may reduce moral hazard, if deposit insurance credibly leaves out non-deposit creditors. Testing the model using EU bank level data...

Persistent link: https://www.econbiz.de/10005004531

Deposit insurance and moral hazard: does the counterfactual matter?

Gropp, Reint; Vesala, Jukka - European Central Bank - 2001

The paper analyses the relationship between deposit insurance, debt-holder monitoring, charter values and risk taking. Utilising cross-sectional and time series variation in the existence of deposit insurance schemes in the EU, we find that the establishment of explicit deposit insurance...

Persistent link: https://www.econbiz.de/10005004538

Which households use banks? Evidence from the transition economies

Beck, Thorsten; Brown, Martin - European Central Bank - 2011

This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking services is related to household characteristics, bank ownership structure and the development of the financial infrastructure. At the household level we find that the holding of a...

Persistent link: https://www.econbiz.de/10008854653

Dual liquidity crises under alternative monetary frameworks: a financial accounts perspective

Bindseil, Ulrich; Winkler, Adalbert - European Central Bank - 2012

This paper contributes to the literature on liquidity crises and central banks acting as lenders of last resort by … capturing the mechanics of dual liquidity crises, i.e. funding crises which encompass both the private and the public sector …, within a closed system of financial accounts. We analyze how the elasticity of liquidity provision by a central bank depends …

Persistent link: https://www.econbiz.de/10010686725

Central bank collateral, asset fire sales, regulation and liquidity

Bindseil, Ulrich - European Central Bank - 2013

' funding liquidity and solvency. Both asset liquidity and central bank haircuts are modelled as power functions within the unit … interval. Funding stability is captured as strategic bank run game in pure strategies between depositors. Asset liquidity, the … bank collateral and why a sudden non-anticipated reduction of asset liquidity, or a tightening of the collateral framework …

Persistent link: https://www.econbiz.de/10010717715

Asset price misalignments and the role of money and credit

Gerdesmeier, Dieter; Reimers, Hans-Eggert; Roffia, Barbara - European Central Bank - 2009

This paper contributes to the literature on the properties of money and creditindicators for detecting asset price misalignments. After a review of the evidence inthe literature on this issue, the paper discusses the approaches that can be consideredto detect asset price busts. Considering a...

Persistent link: https://www.econbiz.de/10005866513

What explains global exchange rate movements during the financial crisis?

Fratzscher, Marcel - European Central Bank - 2009

A striking and unexpected feature of the financial crisis has been the sharpappreciation of the US dollar against virtually all currencies globally. The paper findsthat negative US-specific macroeconomic shocks during the crisis have triggered asignificant strengthening of the US dollar, rather...

Persistent link: https://www.econbiz.de/10005866568

Bidding behaviour in the ECB’s main refinancing operations during the financial crisis

Eisenschmidt, Jens; Hirsch, Astrid; Linzert, Tobias - European Central Bank - 2009

Liquidity provision through its repo auctions has been one of the main instrumentsof the European Central Bank (ECB) to …

Persistent link: https://www.econbiz.de/10005866598

Transmission of monetary policy shocks in Finland: evidence from bank level data on loans

Topi, Jukka; Vilmunen, Jouko - European Central Bank - 2001

We use a panel of quarterly time series observations on Finnish banks to estimate reduced form equations for the growth rate of bank loans. By allowing for individual bank specific effects in the empirical models we specifically seek evidence of a bank-lending channel for the transmission of...

Persistent link: https://www.econbiz.de/10005530976