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The design of lender-of-last-resort interventions can exacerbate the bank-sovereign nexus. During sovereign crises, central bank provision of long-term liquidity incentivizes banks to purchase high yield eligible collateral securities matching the maturity of the central bank loans. Using unique...
Persistent link: https://www.econbiz.de/10011782859
Under the Single Supervisory Mechanism (SSM), introduced in 2014, systemically important euro area banks with combined assets of about 21,000 billion euros are directly supervised by the ECB. We examine from a static and a dynamic perspective how this fundamental shift to unified supervision...
Persistent link: https://www.econbiz.de/10014416089
How do banks respond to asset booms? This paper examines i) how U.S. banks responded to the World War I farmland boom; ii) the impact of regulation; and iii) how bank closures exacerbated the post-war bust. The boom encouraged new bank formation and balance sheet expansion (especially by new...
Persistent link: https://www.econbiz.de/10011782651
This paper examines the implications of the global financial crisis of 2007-10 for reform of the global financial architecture, in particular the International Monetary Fund and the Financial Stability Board and their interaction. These two institutions are not fully comparable, but they must...
Persistent link: https://www.econbiz.de/10008696422
The Financial Sector Reforms Commission (FSLRC) which was set up in 2011 by the Ministry of Finance was mandated to study existing legislation and financial sector regulatory practices in India and to propose improvements. The FSLRC submitted its report in 2013 and four of its members recorded...
Persistent link: https://www.econbiz.de/10011483647
A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand deposits. From the standpoint of theory in the tradition of Diamond and Dybvig (1983) and Green and Lin (2003), it is surprisingly di¢ cult to generate bank panic equilibria if...
Persistent link: https://www.econbiz.de/10011691431
European Union countries offer a unique experience of financial regulatory and supervisory integration, complementing various other European integration efforts following the second world war. Financial regulatory and supervisory integration was a very slow process before 2008, despite...
Persistent link: https://www.econbiz.de/10011613840
The Indian debt overhang issue is one of the major reasons that fresh investments are currently not being made in the scale required to promote higher growth and boost employment. Among banks the public sector banks (PSBs) are burdened with the bulk of net non-performing loans (NNPAs). These...
Persistent link: https://www.econbiz.de/10011638458
opportunities and product innovations. The search for future discontinuities and trends using external knowledge sources enables … search to detect future discontinuities and trends in the environment. To address this knowledge gap, dimensions of search … benefit from different external search strategies to identify discontinuities and trends in the environment. The paper closes …
Persistent link: https://www.econbiz.de/10011487420
Persistent link: https://www.econbiz.de/10012500181