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) the central bank is not allowed to provide direct financial support to stressed member states or to play the role of … lender of last resort in sovereign bond markets, and (ii) the responsibility of fighting against large scale bank runs …, ascribed to domestic governments, is ensured through the implementation of a financial safety net (banking regulation and …
Persistent link: https://www.econbiz.de/10010933858
Drawing together the concepts of inefficiency and banking crisis is directly inspired by business cycles theory where a crisis is the turning point from which the market/economy is recovering. If inefficiency plays a role in the occurrence of banking crisis, the post-crisis period should be the...
Persistent link: https://www.econbiz.de/10010750383
systemic risk. Moreover, bank regulation is considered in a two-scale level, either at the bank level or at the system …The post-crisis financial reforms address the need for systemic regulation, focused not only on individual banks but … alternative model to Basel framework is derived where systemic risk is taken into account in each bank's dynamic. This might be a …
Persistent link: https://www.econbiz.de/10010899303
-fulfilling bank panic. Furthermore, we test various means to prevent or to curb it: the suspension of deposit convertibility, the … "narrow banking" solution. We confirm the possibility of pure-panic bank runs as formalized by Diamond and Dybvig (1983 …). However, this situation remains rare. Partial and self-fulfilling bank runs represent a more general situation. That …
Persistent link: https://www.econbiz.de/10008790990
potential problems at Northern Rock in advance of the bank announcing that it had negotiated emergency lending facilities at the … Bank of England in September 2007. A further aim of the paper is to examine the signalling qualities of four financial … measures of bank risk) so as to explore both the relative and individual qualities of each. Therefore, the paper's findings …
Persistent link: https://www.econbiz.de/10008794740
the internal culture of the investment bank. …
Persistent link: https://www.econbiz.de/10010820476
. Minsky believed that regulation should be linked to the structure of the financial system and effective policy making …
Persistent link: https://www.econbiz.de/10010820974
's capacity to ensure effective regulation through contracts. …
Persistent link: https://www.econbiz.de/10010821194
-taker smaller firms. A regulation trade-off between market efficiency and resilience is identified and quantified: improving the …
Persistent link: https://www.econbiz.de/10010738922
The procedures presented in this paper provide a dynamic apparatus of crediting the industrial operating systems with the assignment to avoid their correlated defaulting, to conserve general safety and soundness and improve its ability to serve as a source for sustainable growth for economy. The...
Persistent link: https://www.econbiz.de/10010739000