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This paper provides the most comprehensive empirical study of the effectiveness of macroprudential instruments to date. Using data from 49 countries, the paper evaluates the effectiveness of macroprudential instruments in reducing systemic risk over time and across institutions and markets. The...
Persistent link: https://www.econbiz.de/10009369434
The paper proposes a framework for examining the process of financial market development. The framework, consistent with the functional view of financial system design, is anchored in studying the incentives facing the key players in financial markets-borrowers, lenders, liquidity providers, and...
Persistent link: https://www.econbiz.de/10008528687
banks was the fatal link between the collapse of structured finance and the global malfunction of funding markets that …
Persistent link: https://www.econbiz.de/10010790365
Banks may be unable to refinance short-term liabilities in case of solvency concerns. To manage this risk, banks can … buffers can be imposed, transparency is not verifiable. Moreover, liquidity requirements can compromise banks' transparency …
Persistent link: https://www.econbiz.de/10010790317
bank credit. We find that banks with strong balance sheets were better able to maintain lending during the crisis. In … credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …. Using data from the syndicated loan market, we exploit variation in banks’ reliance on wholesale funding and their …
Persistent link: https://www.econbiz.de/10011142046
Until the recent financial crisis, the safety and soundness of financial institutions was assessed from the perspective of the individual institution. The financial crisis highlighted the need to take systemic externalities seriously when rethinking prudential oversight and the regulatory...
Persistent link: https://www.econbiz.de/10009293760
The paper provides an empirical analysis of aggregate banking system ratios during systemic banking crises. Drawing upon a wide cross-country dataset, we utilize parametric and nonparametric tests to assess the power of these ratios to discriminate between sound and unsound banking systems. We...
Persistent link: https://www.econbiz.de/10005768721
Many empirical studies of banking crises have employed "banking crisis" (BC) indicators constructedusing primarily information on government actions undertaken in response to bank distress. Weformulate a simple theoretical model of a banking industry which we use to identify and...
Persistent link: https://www.econbiz.de/10008528706
That most corporate tax systems favor debt over equity finance is now widely recognized as, potentially, amplifying risks to financial stability. This paper makes a first attempt to explore, empirically, the link between this tax bias and the probability of financial crisis. It finds that...
Persistent link: https://www.econbiz.de/10011123854
] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] Lack of … partly responsible for the length and severity of these recessions. In the model, banks make decisions about initiating and … them to make inefficient decisions about liquidation, and about retention of the managers who assess credit risk. These …
Persistent link: https://www.econbiz.de/10011242384