Narrow search
Showing 1 - 10 of 140
Cover Image
Are counterparty arrangements in reinsurance a threat to financial stability?
Davison, Matt; Leadbetter, Darrell; Lu, Bin; Voll, Jane - 2016
banking literature to the insurance industry; (ii) assessing the interconnections among reinsurers through potential claims … rather than premiums; and (iii) investigating the most opaque part of the global insurance market, namely, counterparty … in the insurance sector and promote financial stability. …
Persistent link: https://www.econbiz.de/10011521658
Cover Image
A Q-theory of banks
Beganau, Juliane; Bigio, Saki; Majerovitz, Jeremy; … - 2021 - Last updated: September 24, 2021
We document five facts about banks: (1) market and book leverage diverged during the 2008 crisis, (2) Tobin's Q predicts future profitability, (3) neither book nor market leverage appears constrained, (4) banks maintain a market-leverage target that is reached slowly, and (5) precrisis, leverage...
Persistent link: https://www.econbiz.de/10012627919
Cover Image
Funding advantage and market discipline in the Canadian banking sector
Beyhaghi, Mehdi; D'Souza, Chris; Roberts, Gordon S. - 2013
We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks' funding advantage in Canada, and on the extent to which market discipline exists across different securities issued by the Canadian banks. The banking sector in Canada provides a...
Persistent link: https://www.econbiz.de/10010225470
Cover Image
The ex-ante versus ex-post effect of public guarantees
Damar, Evren; Gropp, Reint; Mordel, Adi - 2012
In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks' credit fundamentals. We use this natural experiment to evaluate the...
Persistent link: https://www.econbiz.de/10009580069
Cover Image
Quantifying contagion risk in funding markets : a model-based stress-testing approach
Anand, Kartik; Gauthier, Céline; Souissi, Moez - 2015
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and … market risks of banks are intertwined. We highlight how coordination failure between a bank's creditors and adverse selection …
Persistent link: https://www.econbiz.de/10011304764
Cover Image
The 'Celtic crisis' : guarantees, transparency and systemic liquidity risk
König, Philipp; Anand, Kartik; Heinemann, Frank - 2013
, the credibility and effectiveness of these guarantees are crucially intertwined with the sovereign's funding risks … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …
Persistent link: https://www.econbiz.de/10009788961
Cover Image
Asset encumbrance, bank funding and financial fragility
Ahnert, Toni; Anand, Kartik; Gai, Prasanna; Chapman, James - 2016
unsecured debt and thus exacerbates fragility and raises unsecured funding costs. Deposit insurance or wholesale funding …
Persistent link: https://www.econbiz.de/10011451099
Cover Image
Emergency liquidity facilities, signalling and funding Costs
Gauthier, Céline; Lehar, Alfred; Pérez Saiz, Héctor; … - 2015
In the months preceding the failure of Lehman Brothers in September 2008, banks were willing to pay a premium over the Federal Reserve's discount window (DW) rate to participate in the much less flexible Term Auction Facility (TAF). We empirically test the predictions of a new signalling model...
Persistent link: https://www.econbiz.de/10011408663
Cover Image
Democratic political economy of financial regulation
Livshits, Igor; Park, Youngmin - 2021 - Last updated: November 26, 2021
This paper offers a simple theory of inefficiently lax financial regulation arising as an outcome of a democratic political process. Lax financial regulation encourages some banks to issue risky residential mortgages. In the event of an adverse aggregate housing shock, these banks fail. When...
Persistent link: https://www.econbiz.de/10012670328
Cover Image
Optimal monetary and macroprudential policies
Schroth, Josef - 2021 - Last updated: May 7, 2021
This paper studies monetary policy in an economy where banks make risky loans to firms and provide liquidity services in the form of deposits to households. For given bank equity, market discipline implies that banks can take more deposits when assets are safer or more profitable. Banks respond...
Persistent link: https://www.econbiz.de/10012510693