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Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … liquidity and capital levels were related to differences in sectoral activity around the period of the global financial crisis …
Persistent link: https://www.econbiz.de/10012828242
Sound corporate governance is essential for a well-functioning banking system and the integrity of financial markets. The paper discusses the corporate governance of Italian banks, its regulatory framework, and the specific challenges arising from the role played by foundations and large...
Persistent link: https://www.econbiz.de/10013045259
We present a novel approach that incorporates individual entity stress testing and losses from systemic risk effects (SE losses) into macroprudential stress testing. SE losses are measured using a reduced-form model to value financial entity assets, conditional on macroeconomic stress and the...
Persistent link: https://www.econbiz.de/10012907939
liquidity risk factor. Results show that the level of bank returns is not directly affected by the SLRI, but their volatility … increases when liquidity conditions deteriorate. I do not find a strong association between bank size and exposure to the SLRI …I construct a systemic liquidity risk index (SLRI) from data on violations of arbitrage relationships across several …
Persistent link: https://www.econbiz.de/10013102465
A mechanism is proposed that aims to reduce the risk of a banking sector liquidity crisis — which is a quintessentially …
Persistent link: https://www.econbiz.de/10013028670
and North Africa. Price competition has a positive effect on bank liquidity, as it induces self-discipline incentives on …The paper analyzes the relationship between bank competition and stability, with a specific focus on the Middle East … banks for the choice of bank funding sources and for the holding of liquid assets. On the other hand, price competition may …
Persistent link: https://www.econbiz.de/10013011203
Well-designed banking laws are critical for regulating the market access and operations of banks, as well as their removal from the market in case of failure. While at a financial policy level there is a broad consensus as to the content of banking laws, from a legal perspective their drafting...
Persistent link: https://www.econbiz.de/10013013817
causes a fire-sale and exposes traditional banks toliquidity risk. Higher deposit rates in compensation for liquidity risk ….Policy interventions aimed at making traditional banks safer such as liquidity support, bankregulation and deposit insurance fuel further … a tax onshadow bank profits …
Persistent link: https://www.econbiz.de/10012929925
In this paper, we discuss whether and how bank lobbying can lead to regulatory capture and have real consequences … through an overview of the motivations behind bank lobbying and of recent empirical evidence on the subject. Overall, the …
Persistent link: https://www.econbiz.de/10013250099
precautionary liquidity buffers is associated with measures of bank size, profitability, capitalization, and financial development …Banks' liquidity holdings are comfortably above legal or prudential requirements in most Central American countries …. While good for financial stability, high systemic liquidity may nonetheless hinder monetary policy transmission and …
Persistent link: https://www.econbiz.de/10013085995