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accumulate a buffer of liquid assets, or strengthen transparency to communicate solvency. While a liquidity buffer provides … bank may choose insufficient liquidity buffers and transparency. The regulatory response is constained: while liquidity … buffers can be imposed, transparency is not verifiable. Moreover, liquidity requirements can compromise banks' transparency …
Persistent link: https://www.econbiz.de/10010790317
particular, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of …. Using data from the syndicated loan market, we exploit variation in banks’ reliance on wholesale funding and their … structural liquidity positions in 2007Q2 to estimate the impact of exposure to market freezes during 2007–08 on the supply of …
Persistent link: https://www.econbiz.de/10011142046
The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers …. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in … Europe. We argue that cyclical and structural factors have altered the structure, cost, and composition of funding for …
Persistent link: https://www.econbiz.de/10011242310
In this paper, we study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. We find that the introduction of a...
Persistent link: https://www.econbiz.de/10010790358
The global financial crisis has placed the spotlight squarely on bank stress tests. Stress tests conducted in the lead-up to the crisis, including those by IMF staff, were not always able to identify the right risks and vulnerabilities. Since then, IMF staff has developed more robust stress...
Persistent link: https://www.econbiz.de/10011242340
banking sector, including a comprehensive stress-testing exercise of banks’ solvency and liquidity positions. While the … banking sector appears resilient to credit risk stress tests, liquidity stress test results reveal some weaknesses owing to … its heavy reliance on wholesale funding. Swedish bank groups have extensive cross-border activities, mostly in the …
Persistent link: https://www.econbiz.de/10011244366
This article summarizes the European Union’s stress testing exercises and future priorities. The 2011 solvency stress testing was marked by methodology and data. The exercise forced banks to increase the quality and quantity of capitalization. This test has many controversial issues, but...
Persistent link: https://www.econbiz.de/10011244482
Persistent link: https://www.econbiz.de/10011244502
banks have active cross-border liquidity flows, which may complicate the operation of monetary policy. The Central Bank of … Initiative. The CBN should improve data collection and granularity on cross-border transactions and funding flows of Nigerian …
Persistent link: https://www.econbiz.de/10011244542
This Financial System Stability Assessment on the United Arab Emirates (UAE) examines macroeconomic and financial sector developments. The banking sector as a whole shows comfortable levels of capitalization and profits, having benefited from the rapid expansion of the economy and a steady...
Persistent link: https://www.econbiz.de/10011244595