Showing 1 - 10 of 471
with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that …-linear function of the combination of network structures and bank-specific characteristics …
Persistent link: https://www.econbiz.de/10012864120
link information production to outcomes: high levels of information production predict bank balance sheet contraction and …
Persistent link: https://www.econbiz.de/10013243048
One of the challenges of financial stability analysis and bank stress testing is how to establish scenarios with … capital positions. The outcome suggests that spillover effects have a highly non-linear impact on bank soundness, both in …
Persistent link: https://www.econbiz.de/10013050679
the probability of financial crisis. It finds that greater tax bias is associated with significantly higher aggregate bank …
Persistent link: https://www.econbiz.de/10013085611
We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … creates moral hazard - increases bank risk taking. However, when a bank's success depends on both its effort and the overall … invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when …
Persistent link: https://www.econbiz.de/10013071924
This paper examines whether the coordinated use of macroprudential policies can help lessen the incidence of banking crises. It is well-known that rapid domestic credit growth and house price growth positively influence the chances of a banking crisis. As well, a crisis in other countries with...
Persistent link: https://www.econbiz.de/10012928012
This paper explores how much of the movements in the sovereign spreads of Asian economies over the course of the global financial crisis has reflected shifts in (i) global risk aversion; (ii) country-specific risks, directly from worsening fundamentals, and indirectly from spillovers originating...
Persistent link: https://www.econbiz.de/10013124056
The recent global financial crisis was the first in recent history that was triggered by problems in the financial system of the mature economies. Existing work on financial crisis in emerging market countries, however, almost exclusively focus on the role of financial frictions in the domestic...
Persistent link: https://www.econbiz.de/10013088405
This paper studies banks' decision to form financial interconnections using a model of financial contagion that explicitly takes into account the crisis state of the world. This allows us to model the network formation decision as optimising behaviour of competitive banks, where they balance the...
Persistent link: https://www.econbiz.de/10012977783
The analysis of interconnectedness and contagion is an important part of the financial stability and risk assessment of a country's financial system. This paper offers detailed and practical guidance on how to conduct a comprehensive analysis of interconnectedness and contagion for a country's...
Persistent link: https://www.econbiz.de/10012858959