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Shadow banking : financial intermediation beyond banks
Adrian, Tobias; Chrétien, Edouard; Chui, Michael; … - Shadow Banking: Financial Intermediation beyond Banks …; … - 2018
Persistent link: https://www.econbiz.de/10011790739
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Bankers' compensation: Sprint swimming in short bonus pools?
Jokivuolle, Esa; Keppo, Jussi - Suomen Pankki - 2014
The global financial crisis of 2007–2008 has given rise to new regulatory initiatives to put restrictions on the size and the term of bankers' pay. We revisit both theoretically and empirically the question of whether these regulations are justified. We model bonuses as a series of sequential...
Persistent link: https://www.econbiz.de/10010734434
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Crisis performance of European banks – does management ownership matter?
Westman, Hanna - Suomen Pankki - 2014
Failure in bank corporate governance has been seen as a contributing factor to excessive risk-taking pre-crisis with … managerial incentives on bank crisis performance is scarce. Moreover, bank strategy has not previously been accounted for. Hence …
Persistent link: https://www.econbiz.de/10011082590
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Bonus caps, deferrals and bankers' risk-taking
Jokivuolle, Esa; Keppo, Jussi; Yuan, Xuchuan - Suomen Pankki - 2015
We model a banker's future bonuses as a series of call options on the bank's profits and show that bonus caps and …
Persistent link: https://www.econbiz.de/10011207862
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Transmission of macro shocks to loan losses in a deep crisis: the case of Finland
Jokivuolle, Esa; Viren, Matti; Vähämaa, Oskari - Suomen Pankki - 2009
Building on the work of Sorge and Virolainen (2006), we revisit the data on aggregate Finnish bank loan losses from the …
Persistent link: https://www.econbiz.de/10008509434
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Macro-model-based stress testing of Basel II capital requirements
Jokivuolle, Esa; Virolainen, Kimmo; Vähämaa, Oskari - Suomen Pankki - 2008
Basel II framework requires banks to conduct stress tests on their potential future minimum capital requirements and consider ‘at least the effect of mild recession scenarios’. We propose a stress testing framework for minimum capital requirements in which banks’ corporate credit risks are...
Persistent link: https://www.econbiz.de/10005190782
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Macro stress testing with a macroeconomic credit risk model for Finland
Virolainen, Kimmo - Suomen Pankki - 2004
In the discussion paper, we employ data on industry-specific corporate sector bankruptcies over the time period from 1986 to 2003 and estimate a macroeconomic credit risk model for the Finnish corporate sector. The sample period includes a severe recession with significantly higher-than-average...
Persistent link: https://www.econbiz.de/10005648883
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Portfolio effects and efficiency of lending under Basel II
Jokivuolle, Esa; Vesala, Timo - Suomen Pankki - 2007
of Basel II on the efficiency of bank lending. We consider competitive credit markets where entrepreneurs may apply for … the cyclicality of bank lending over the business cycle. …
Persistent link: https://www.econbiz.de/10005648952
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Leverage ratio requirement, credit allocation and bank stability
Kiema, Ilkka; Jokivuolle, Esa - Suomen Pankki - 2011
We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top … current 3% LRR might even reduce bank stability, counter to regulatory intentions. This is because the allocational effect … caused by the LRR, which makes bank loan portfolios more alike, may turn beneficial risk spreading into harmful risk …
Persistent link: https://www.econbiz.de/10009003108
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Credit allocation, capital requirements and output
Jokivuolle, Esa; Kiema, Ilkka; Vesala, Timo - Suomen Pankki - 2010
We show how banks’ excessive risk-taking, stemming from informational asymmetries in loan markets, can lead to an excessive output loss when a recession starts. Risk-based capital requirements can alleviate the output loss by reducing excessive risk-taking in ‘normal’ times. Model...
Persistent link: https://www.econbiz.de/10008774238