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This paper investigates the extent to which output has recovered from the Asian crisis. A regime-switching approach that introduces two state variables is used to decompose recessions in a set of six Asian countries into permanent and transitory components. While growth recovered fairly quickly...
Persistent link: https://www.econbiz.de/10014404003
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
The paper investigates EU banks' profitability through the recent financial cycle using banklevel balance sheet and … stable over the financial cycle, including post-crisis, and there is no clear evidence that aspects of bank business model …, such as higher reliance on fees and commission income, were associated with better profitability post-crisis …
Persistent link: https://www.econbiz.de/10011852611
This paper reviews the empirical relationships between credit growth, economic recovery, and bank profitability in … underperformance. Bank lending has been subdued as well, but this appears to have only held back the recovery relatively moderately. A … 10 percent increase in bank credit to the private sector is associated with a rise of 0.6-1 percent in real GDP and 2-2 1 …
Persistent link: https://www.econbiz.de/10011763708
Persistent link: https://www.econbiz.de/10009425652
This paper evaluates monetary policy and its relationship with the exchange rate in five Asian crisis countries. The findings are compared with previous currency crises in recent history. The paper finds no evidence of overly tight monetary policy in the Asian crisis countries in 1997 and early...
Persistent link: https://www.econbiz.de/10014401509
sectoral business cycle sensitivity affected corporate profitability during the recovery period of the global financial crisis … (GFC). Using cross-sectional analyses, our findings indicate that corporate profitability improved significantly after the … be significant in explaining changes in corporate profitability …
Persistent link: https://www.econbiz.de/10011978407
Persistent link: https://www.econbiz.de/10009424692
The objective of this paper is to provide a retrospective assessment of our ability to have predicted the impact of the 1997 crisis on the Korean corporate sector. We perform some simple stress tests on the aggregate balance sheets and income statements of the corporate sector to determine what...
Persistent link: https://www.econbiz.de/10014400513
After years of strong performance, Korea’s economy entered a crisis in 1997, owing largely to structural problems in its financial and corporate sectors. These problems emerged in the second half of that year, when the capital inflows that had helped finance Korea’s growth were reversed, as...
Persistent link: https://www.econbiz.de/10014400974