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be detrimental to bank stability, the more so where bank interest rates are deregulated and the institutional environment … is weak. Also, the adverse impact of deposit insurance on bank stability tends to be stronger when the coverage offered …
Persistent link: https://www.econbiz.de/10013317984
Deteriorating public finances around the world raise doubts about countries' abilities to bail out their largest banks …. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and CDS spreads. Overall, bank stock prices reflect a negative capitalization of government debt and they …
Persistent link: https://www.econbiz.de/10013133399
supervision around the world. In concluding the paper identifies reforms that would improve incentives by increasing transparency …
Persistent link: https://www.econbiz.de/10013158630
A bank's interest expenses are found to increase with its degree of internationalization as proxied by its share of … bank is performing badly. Our benchmark estimation suggests that an international bank's cost of funds raised through a … foreign subsidiary is between 1.5% and 2.4% higher than the cost of funds for a purely domestic bank, which is a sizeable …
Persistent link: https://www.econbiz.de/10013117739
Persistent link: https://www.econbiz.de/10003421754
lead to excessive risk-taking. We examine the relation between deposit insurance and bank risk and systemic fragility in … the years leading up to and during the recent financial crisis. We find that generous financial safety nets increase bank … risk and systemic fragility in the years leading up to the global financial crisis. However, during the crisis, bank risk …
Persistent link: https://www.econbiz.de/10013089811
This paper analyzes bank stock prices around the world to assess the impact of the COVID-19 pandemic on the banking … policy announcements on the performance of bank stocks. Overall, the results suggest that the crisis and the countercyclical … lending role that banks are expected to play have put banking systems under significant stress, with bank stocks …
Persistent link: https://www.econbiz.de/10012823532
Despite the devastating worldwide human and economic tolls of the COVID-19 crisis, it has created some positive economic and financial surprises and opportunities for research. This paper highlights two such favorable surprises – the shortest U.S. recession on record and the avoidance of any...
Persistent link: https://www.econbiz.de/10013212045
For an international sample of banks, we construct measures of a bank's absolute size and its systemic size defined as … size relative to the national economy. We then examine how a bank's risk and return, its activity mix and funding strategy … that a bank's interest cost tends to rise with its systemic size can also in part explain why a bank's rate of return on …
Persistent link: https://www.econbiz.de/10013129004
This paper summarizes the latest update of the World Bank Bank Regulation and Supervision Survey. The paper explores … and summarizes the evolution in bank capital regulations, capitalization of banks, market discipline, and supervisory … crisis. Bank supervision became stricter and more complex compared with the pre-global financial crisis period. However …
Persistent link: https://www.econbiz.de/10012121250