discipline by monitoring counterparty credit risk and theories highlighting that secured loans are less informational sensitive … provide more secured loans to replace unsecured lending, which is not consistent with speculative or precautionary liquidity …

mathematical tool which can be applied in the assessment of composite financial risk. Copula-based dependence modelling is a … approach to risk modelling is the exibility in the choice of distributions used to model co-dependencies. The practical …

the presidential cycle election (PCE) theory as an alternative explanation. The PCE theory states that incumbent parties … formulate seven different propositions relating to fiscal, monetary, tax, and political implications of PCE theory. We find no … statistically significant evidence confirming the PCE theory as a plausible explanation for the presidential cycle effect. The …

the insurance sector. The downside risk of insurers is explicitly modelled by common and idiosyncratic risk factors. Since … reinsurance is important for the capacity of insurers, we measure risk dependence among European insurers and reinsurers. The … results point to a relatively low insurance sector wide risk. Dependence among insurers is higher than among reinsurers. …

This paper studies banks' liquidity provision in the Lagos and Wright model of monetary exchanges. With aggregate … uncertainty we show that banks sometimes exhaust their cash reserves and fail to satisfy their depositors' need of consumption … smoothing. The banking panics can be eliminated by the zero-interest policy for the perfect risk sharing, but the first best can …