Showing 1 - 7 of 7
In the early 1990s, after decades of high inflation and financial repression, Argentina embarked on a course of macroeconomic and bank regulatory reform. Bank regulatory policy promoted privatization, financial liberalization, and free entry, limited safety net support, and established a novel...
Persistent link: https://www.econbiz.de/10012471046
We examine whether examiners were informed and contributed to the health of the banking sector. Information included quantitative information that was eventually made public, quantitative information that remained private, and subjective information dependent on the examiner's production of...
Persistent link: https://www.econbiz.de/10012453254
The regulation of bank capital as a means of smoothing the credit cycle is a central element of forthcoming macro-prudential regimes internationally. For such regulation to be effective in controlling the aggregate supply of credit it must be the case that: (i) changes in capital requirements...
Persistent link: https://www.econbiz.de/10012460836
This paper employs a novel multi-country dataset of corporate defaults to develop a model of distress risk specific to emerging markets. The data suggest that global financial variables such as US interest rates and shifts in global liquidity and risk aversion have significant predictive power...
Persistent link: https://www.econbiz.de/10012481796
During the global financial crisis, the Reserve Bank of India enacted forbearance measures that lowered capital provisioning rates for loans under temporary liquidity stress. Matched bank-firm data reveal that troubled banks took advantage of the policy to also shield firms facing serious...
Persistent link: https://www.econbiz.de/10012482651
This paper documents a set of new stylized facts about leverage and financial fragility for emerging market firms following the Global Financial Crisis (GFC). Corporate debt vulnerability indicators during the Asian Financial Crisis (AFC) attributed to corporate financial roots provide a...
Persistent link: https://www.econbiz.de/10012455274
Deposit insurance reduces liquidity risk but it also can increase insolvency risk by encouraging reckless behavior. A … increased their insolvency risk, and competed aggressively for the deposits of uninsured banks operating nearby. When prices …
Persistent link: https://www.econbiz.de/10012455988