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We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from diversification within large banks and financial...
Persistent link: https://www.econbiz.de/10011346454
In the aftermath of the financial crisis, governments are rightly reducing their exposure to the banking system. Bail-in arrangements should ensure that shareholders and creditors take the first losses. The next line of defence is a resolution fund, which is filled via levies on banks....
Persistent link: https://www.econbiz.de/10013006142
The financial crisis had a major impact on the banking landscape. As troubled banks were rescued by their home country, the question arises what happened to cross-border banking. Our findings indicate that cross-border banking remains strong within Europe; the Single Market in Banking is still in...
Persistent link: https://www.econbiz.de/10013125993
of an individual bank. Our results show that cross-border banking decreases banks' risk, by lowering the insolvency risk …
Persistent link: https://www.econbiz.de/10012854051
sufficiently stable and customer-focused. Since then, banks and regulators alike have been busy reviewing bank business models, and …
Persistent link: https://www.econbiz.de/10011689963
The stability of a banking system ultimately depends on the strength and credibility of the fiscal backstop. While large countries can still afford to resolve large global banks on their own, small and medium-sized countries face a policy choice. This paper investigates the impact of resolution...
Persistent link: https://www.econbiz.de/10011975754
bank resolution regimes. While such resolution regimes are welcome to reintroduce market discipline and reduce the reliance … need for a fiscal backstop to the financial system. For bail-in to work, it is important that bail-inable bank bonds are … working together, including in terms of sharing the burden of a potential bank bailout. The euro area has adopted the latter …
Persistent link: https://www.econbiz.de/10011978339
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
European Union (EU) 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/10011561790
Four major Australian banks span the Australian and New Zealand banking system. Applying the financial trilemma model, this article investigates possible approaches for cooperation in the supervision and resolution of these cross-border banks. The article first reviews the current arrangement in...
Persistent link: https://www.econbiz.de/10012848903