This paper presents new evidence on the empirical relationship between bank solvency and funding costs. Building on a newly constructed dataset drawing on supervisory data for 54 large banks from six advanced countries over 2004-2013, we use a simultaneous equation approach to estimate the...

A framework to run system-wide, balance sheet data-based liquidity stress tests is presented. The liquidity framework includes three elements: (a) a module to simulate the impact of bank run scenarios; (b) a module to assess risks arising from maturity transformation and rollover risks,...

Given the tense situation in international money markets, the Austrian Financial Market Authority (FMA) and the Oesterreichische Nationalbank (OeNB) stepped up their liquidity monitoring in October 2008, requiring banks to submit reports on their liquidity situation on a weekly basis. Article 70...

Any attempt to resolve a systemic financial crisis inherently involves conflicts of objectives. In the following article, we identify and elaborate on the conflicts of objectives embodied in the EU bank packages. Building on this, we then analyze how the EU Member States and the EU institutions...

This paper proposes a conceptual framework for analyzing the effects that proposals to strengthen the resilience of the banking sector may have on the Austrian economy. We use this framework to quantify the macroeconomic costs of the following regulatory reform measures: Requiring banks to raise...

The objective of this paper is to quantify the contagion effect of an operational incident occurring at one ARTIS participant’s site on the payment activity of the other ARTIS participants. We used model simulations to focus on operational problems occurring at one of the participants, not an...

The following study analyzes the impact of demographic developments in Austria on the long-term average real interest rate, funded pension provision and the implications of demographic developments for the stability of the financial system. The key results of this study are twofold: (1)...