Showing 1 - 10 of 1,195
. Without regulation, funds hold insufficient deposits and must sell bonds when hit by large redemptions. Bond liquidation is …
Persistent link: https://www.econbiz.de/10013403692
I develop a model of money market funds (MMFs) to study the ability of sponsor support to provide stability to the industry. I find that strategic complementarities in the sponsors' support decisions can make MMFs vulnerable to runs different from the canonical bank-runs: it may lead to runs of...
Persistent link: https://www.econbiz.de/10013025469
We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments …
Persistent link: https://www.econbiz.de/10012869770
existing capital regulation by tackling this issue. Welfare-maximizing DPTs are effective (more than the CCyB) in smoothing the … to a Basel III-type of capital regulation through various channels …
Persistent link: https://www.econbiz.de/10012829529
The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test scenario. We construct a stress test model that accounts for a granular and multi-faceted representation of the liquidity of marketable and non-marketable assets. In...
Persistent link: https://www.econbiz.de/10014354850
In this paper we examine the quantitative effects of margin regulation on volatility in asset markets. We consider a … of collateral constraints leads to strong excess volatility. Thus, a regulation of margin requirements may have … stabilizing effects. However, in line with the empirical evidence on margin regulation in U.S. stock markets, we show that changes …
Persistent link: https://www.econbiz.de/10013051665
How to conduct macro-prudential regulation? How to coordinate monetary policy and macro-prudential policy? To address …
Persistent link: https://www.econbiz.de/10012917168
We explore the relationship between financial reforms and income inequality using a panel of 29 countries over 1975-2005. We extend panel unit root tests to allow for the presence of some financial-reform covariates and further suggest an associated but novel, semi-parametric approach. Results...
Persistent link: https://www.econbiz.de/10013024727
The 2007-2010 financial crisis highlighted the central role of financial intermediaries' stability in buttressing a smooth transmission of credit to borrowers. While results from the years prior to the crisis often cast doubts on the strength of the bank lending channel, recent evidence shows...
Persistent link: https://www.econbiz.de/10013126858
Lobbying can provide policy makers with important sector-specific information and thereby facilitating informed … decisions. If going far beyond this, in particular if successfully influencing policy makers to unnecessarily tighten regulation …
Persistent link: https://www.econbiz.de/10012954407