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Theoretical and empirical research has shown that a sound and effective financial system is critical for economic development and growth. The financial system, however, is also subject to boom and bust cycles and fragility, with negative repercussions for the real economy. Further, the political...
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We assess the ability of bank resolution frameworks to deal with systemic banking fragility. Using a novel and detailed … database on bank resolution regimes in 22 member countries of the Financial Stability Board, we show that systemic risk, as … measured by Delta CoVaR, increases more for banks in countries with more comprehensive bank resolution frameworks after …
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