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The London Interbank Offered Rate (LIBOR) is a widely used indicator of funding conditions in the interbank market. As of 2013, LIBOR underpins more than $300 trillion of financial contracts, including swaps and futures, in addition to trillions more in variable-rate mortgage and student loans....
Persistent link: https://www.econbiz.de/10010393220
these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this …
Persistent link: https://www.econbiz.de/10011436788
This paper assesses the role of bank and nonbank financial institutions' balance sheet foreign exposures and risk … risks off balance sheet. In advanced countries, the findings suggest that nonbank portfolio adjustment to changing risk … conditions may take place through derivatives transactions with banks, the hedging practices of which trigger bank related …
Persistent link: https://www.econbiz.de/10012019857
This paper studies the relationship between the business cycle and financial intermediation in the euro area. We establish stylized facts and study their stability during the global financial crisis and the European sovereign debt crisis. Long-term interest rates have been exceptionally high and...
Persistent link: https://www.econbiz.de/10012000041
We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …
Persistent link: https://www.econbiz.de/10012001476
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/10012102210
We study market reactions to seasoned equity issuances that were announced by financial companies between 2002 and 2013. To assess the risk and valuation implications of these seasoned equity issuances, we conduct an event analysis using daily credit default swap (CDS) and stock market pricing...
Persistent link: https://www.econbiz.de/10010423809
Bank holding companies (BHCs) can be complex organizations, conducting multiple lines of business through many distinct … legal entities and across a range of geographies. While such complexity raises the costs of bank resolution when …, liquidity management, and synergy improvements that reduce risk. The outcomes of such trade-offs may depend on bank governance …
Persistent link: https://www.econbiz.de/10012234342
orientation, pressures on funding models and entity structures could affect the efficiency of capital flows through the bank …
Persistent link: https://www.econbiz.de/10012155182