This paper presents and analyzes a simple banking model in which banks have access to international capital markets and domestic asset markets. The model generates two types of equilibria: a no-default equilibrium and a mixed equilibrium. In the no-default equilibrium, all banks are symmetric...

This paper investigates the impact of governance and regulation on systemic risk across a sample of banks from 10 Emerging CEE countries during 2005-2012. Overall, our results show that tight internal risk management mechanisms and shareholder-friendly supervisory boards are associated with...

This paper studies the nature of spillover effects in bank lending flows from advanced to the emerging market economies and identifies specific channels through which such effects occur. Based on a gravity model we examine a panel data set on cross-border bank flows from 17 advanced to 28...

This paper examines the effect of economic freedoms on financial stability across banking industry in Indonesia. Using unbalanced panel data of Indonesian banks, the effect of economic freedom to financial stability is estimated using GMM approach covering the period of analysis from 2004 to...