liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the … fund managers are more conservative the liquidity requirement has to be strengthened while the solvency one relaxed. Higher … financial intermediary is opaque) and, correspondingly, liquidity requirements should be tightened. The model is applied to …

-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it … defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … bank’s characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …

. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a … financial transactions tax is entirely neutral. Second, in a model with correlated investment risk and short-term financing of …

supervision and regulation. When a MNB expands internationally with subsidiaries, the MNB operates under the legislation of … left to the national regulators. An important issue is whether the decentralized approach to regulation of MNBs creates … inefficiencies and financial instability. We show that lack of international coordination of regulation towards MNB …

restrictions upon foreign bank entry and foreign ownership have been affectively abolished. Using Data Envelopment Analysis (DEA … banks have used size as a barrier to entry to the new entrants in the post-deregulation period. Furthermore, bank efficiency … seems to have increased post-deregulation and the competition resulting from diversity in bank types was important to prompt …

regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to …: it rises as regulation stringency moves from low to medium levels and falls from medium to high levels. Countries located …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent …We analyze link between mortgage-related regulatory penalties levied on banks and the level of systemic risk in the U ….S. banking industry. We employ a frequency decomposition of volatility spillovers (connectedness) to assess system-wide risk …

, 2008), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback … inferior to imposing minimum liquidity standards ex ante combined with lender of last resort policy. -- liquidity risk ; free …Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing …

about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2) set … constrain high risk bank investment without simultaneously reducing overall investment volume. However, if collusion between the … rating agency and the bank corrupts rating quality, rating-independent regulation enhances welfare. The welfare benefits are …