Similar Search Results

Bank Insolvency and Stabilization in Eastern Europe

International Monetary Fund - 1992

The profound structural reform underway in Eastern Europe has revealed the weakness of the banking sector there; macroeconomic stability and other reforms are thereby threatened. After an overview of recent developments in the banking sectors of these countries, a model is developed that...

Persistent link: https://www.econbiz.de/10014396262

International Transmission of Bank and Corporate Distress

N'Diaye, Papa M'B. P. - 2010

The paper evaluates how increases in banks’ and nonfinancial corporates’ default risk are transmitted in the global economy, using in a vector autoregression model for 30 advanced and emerging economies for the period from January 1996 to December 2008. The results point to two-way causality...

Persistent link: https://www.econbiz.de/10014402720

Optimal bank recovery

Goodhart, Charles A. E.; Segoviano, Miguel - 2015

Banks' living wills involve both recovery and resolution. Since it may not always be clear when recovery plans or actions should be triggered, there is a role for an objective metric to trigger recovery. We outline how such a metric could be constructed meeting criteria of (i) adequate loss...

Persistent link: https://www.econbiz.de/10011408292

High Liquidity Creation and Bank Failures

Fungacova, Zuzana - 2015

We formulate the “High Liquidity Creation Hypothesis” (HLCH) that a proliferation in the core activity of bank … liquidity creation increases failure probability. We test the HLCH in the context of Russian banking, which provides a natural … field experiment due to numerous failures experienced over the past decade. Using Berger and Bouwman’s (2009) liquidity …

Persistent link: https://www.econbiz.de/10014412104

Is there a role for funding in explaining recent U.S. banks’ failures?

Bologna, Pierluigi - 2011

Persistent link: https://www.econbiz.de/10009424984

Is there a Role for Funding in Explaining Recent U.S. Banks' Failures?

Bologna, Pierluigi - 2011

This paper tests the role of different banks'' liquidity funding structures in explaining the banks'' failures, which … recognizes that the new liquidity framework proposed by the Basel Committee on Banking Supervision appears to have the features … to strenghten banks'' liquidity conditions and improve financial stability. Its correct implementation together with …

Persistent link: https://www.econbiz.de/10014398525

Dealing with Private Debt Distress in the Wake of the European Financial Crisis : A Review of the Economics and Legal Toolbox

Liu, Yan - 2013

The private non-financial sector in Europe is facing increased challenges in meeting its debt servicing obligation. In response, governments are revisiting legal tools and—in some cases—institutional arrangements to deal with over-indebtedness. For households, where the problem in some...

Persistent link: https://www.econbiz.de/10014395387

Valuation of Menu items in Debt Restructuring

International Monetary Fund - 1989

This paper outlines a procedure for calculating the cash value of “menu items” in debt restructuring proposals, including par and non-par exchanges, with enhancements consisting of either interest or principal guarantees. It is argued that under certain plausible assumptions interest and...

Persistent link: https://www.econbiz.de/10014396239

The COVID-19 impact on corporate leverage and financial fragility

Haque, Sharjil Muktafi; Varghese, Richard - 2021

We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is...

Persistent link: https://www.econbiz.de/10012796218

Global corporate stress tests : impact of the COVID-19 pandemic and policy responses

Tressel, Thierry; Ding, Xiaodan - 2021

shocks induced by the pandemic to their liquidity, viability and solvency. For this purpose, we develop novel multi … their debt, and on their liquidity and solvency positions. Applying the October 2020 WEO baseline and adverse scenarios, we … the initial shock as earnings recover in line with projected macroeconomic conditions, liquidity needs remain substantial …

Persistent link: https://www.econbiz.de/10012605125