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Models which integrate various financial stability risks are still in an early stage of development. In this paper we use the Macrofinancial Risk model (MfRisk) to construct a measure for financial stability. MfRisk applies the Merton option model in a multi-sector framework. We argue that this...
Persistent link: https://www.econbiz.de/10005106687
The lack of available prices in the Dutch life insurance industry makes competition an elusive concept that defies direct observation. Therefore, this paper investigates competition by analysing several factors which may affect the competitive nature of a market and various indirect measurement...
Persistent link: https://www.econbiz.de/10005021828
We test if interconnectedness in the interbank market is a channel through which banks affect each others riskiness. The evidence is based on quarterly bilateral exposures of all banks active in the Dutch interbank market between 1998 and 2008. A spatial lag model, borrowed from regional...
Persistent link: https://www.econbiz.de/10008468099
This paper investigates competition in the Dutch non-life insurance industry indirectly by measuring scale economies and X-inefficiency, assuming that strong competition would force insurance firms to exploit unused scale economies and to push down inefficiencies. We observe substantial...
Persistent link: https://www.econbiz.de/10005030210
A well-performing life insurance industry benefits consumers, producers and insurance firm stockholders alike. Unfavourable market conditions stress the need for life insurers to perform well in order to remain solvent. Using a unique supervisory data set, this paper investigates competition and...
Persistent link: https://www.econbiz.de/10010592998
In this paper we investigate how expected liquidation costs affect a firm's investment and financing decisions. We hypothesise that comovement of firm and industry sales measures such costs, which create a premium on external finance and make investment more sensitive to the availability of...
Persistent link: https://www.econbiz.de/10005021877
This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific characteristics that distinguish banks from other...
Persistent link: https://www.econbiz.de/10009275471
This paper provides some history of deposit insurance and investor protection in the Netherlands against the background of the history of such protection in the European Union, EU-legislation and the recent changes in the design of financial supervision in the Netherlands. It discusses how...
Persistent link: https://www.econbiz.de/10005101939
This paper re-assesses findings of the literature that the systematic debt stabilising response in fiscal policy has … been sufficiently strong for keeping debt ratios on a sustainable path in Euro area countries. In doing so, it adjusts the … towards net and gross debt are comparable. After 1993, the reaction to net debt weakens while policies react more strongly to …
Persistent link: https://www.econbiz.de/10005021825
We examine whether Fitch support ratings of US banks depend on bank size. Using quarterly data for the period 2004:Q4 to 2012:Q4 and controlling for several factors that make large and small banks different, we find that bank size is positively related to support ratings. However, the effect is...
Persistent link: https://www.econbiz.de/10010885311