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(including external risk factors); the policy implications of this analysis are projected after evaluating two fundamental issues …
Persistent link: https://www.econbiz.de/10011108272
First externalities risk due to the size of the companies or the principle that large companies are also at risk of … for savers and investors are taken. If we accept-so conservatively that the risk exposure of a company is limited by its … risk foreseeable losses with positive externalities, then, what can happen with negative derivatives risk capital …
Persistent link: https://www.econbiz.de/10011110979
change in tax level and thus investors switch from large and medium sized stocks to small sized stocks to mitigate the risk. …
Persistent link: https://www.econbiz.de/10011259967
to take excessive risk because it subsidizes banks. With safety net protection, depositors and other protected creditors … are willing to lend to banks at lower interest rates, given the amount of risk. This cheaper funding and reduced market … adequately assess, monitor, and control bank risk taking. Current activities conducted by banks that would be prohibited for them …
Persistent link: https://www.econbiz.de/10011259288
Since banks are among the most important sources not only of finance but also of external governance for firms, the corporate governance of banks is a crucial factor for growth and development. Despite its importance, this topic has been explored only by a few studies. While some authors...
Persistent link: https://www.econbiz.de/10005836074
loans booked during 1983-1985. Third, other ex ante risk measures are systematically related to banking failure throughout … the sample period. These results suggest that risk-seeking banks brought about their own demise and commercial real estate …
Persistent link: https://www.econbiz.de/10008615013
We compare the out-of-sample forecasting accuracy of the time-varying hazard model developed by Shumway (2001) and the one-period probit model used by Cole and Gunther (1998). Using data on U.S. bank failures from 1985 – 1992, we find that, from an econometric perspective, the hazard model is...
Persistent link: https://www.econbiz.de/10008615025
How quickly do the CAMEL ratings regulators assign to banks during on-site examinations become "stale"? One measure of the information content of CAMEL ratings is their ability to discriminate between banks that will fail and those that will survive. To assess the accuracy of CAMEL ratings in...
Persistent link: https://www.econbiz.de/10008615036
In this study, we analyze why U.S. commercial banks failed during the recent financial crisis. We find that proxies for commercial real estate investments, as well as traditional proxies for the CAMELS components, do an excellent job in explaining the failures of banks that were closed during...
Persistent link: https://www.econbiz.de/10008615045
In this paper, using network tools, I analyse systemic impacts of liquidity shocks in interbank market in case of endogenous haircuts. Gai, Haldane and Kapadia (2011) introduce a benchmark for liquidity crisis following haircut shocks, and Gorton and Metrick (2010) reveal the evidence from...
Persistent link: https://www.econbiz.de/10011111629