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Depositor preference and collateralization of borrowing may reduce the cost of settling the conflicts among creditors that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank rather than affect creditors' expected returns, should...
Persistent link: https://www.econbiz.de/10013078050
banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically … Important Banks (G-SIBs). Drawing from banks' reporting, it identifies strategies along four dimensions-consolidated lines of …
Persistent link: https://www.econbiz.de/10012843301
The paper tests the effectiveness of financial soundness indicators (FSIs) as harbingers of banking crises, using … occurrence of systemic banking crises, and suggest that some indicators are precursors to the occurrence of banking crises …
Persistent link: https://www.econbiz.de/10013061184
Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data …
Persistent link: https://www.econbiz.de/10013305628
This paper studies banks' decision to form financial interconnections using a model of financial contagion that … behaviour of competitive banks, where they balance the benefits of forming interbank linkages against the cost of contagion. We …
Persistent link: https://www.econbiz.de/10012977783
specific entities to systemic contagion. To illustrate the approach, we quantify SE losses due to Lehman Brothers' default …
Persistent link: https://www.econbiz.de/10012907939
We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long … decades leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will … scale restrictions in banking …
Persistent link: https://www.econbiz.de/10013098572
We present a model in which shadow banking arises endogenously and undermines marketdiscipline on traditional banks …. Depositors' ability to re-optimize in response to crisesimposes market discipline on traditional banks: these banks optimally … alternative banking strategy that combines high risk-taking with earlyliquidation in times of crisis. We bring the model to bear …
Persistent link: https://www.econbiz.de/10012929925
We explore the global footprint of Chinese banks and compare it with that of other bank nationalities. Chinese banks …). Their global reach resembles that of banks from advanced economies (AEs). We take a nationality approach as international … banks, and Chinese banks in particular, grant a substantial share of their cross-border loans from affiliates located abroad …
Persistent link: https://www.econbiz.de/10013252034
For a large part of the past decade, Japan has witnessed a steady deterioration in the health of its banking system …
Persistent link: https://www.econbiz.de/10013317973