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crisis of October 2008, when all three major banks in Iceland collapsed in three successive days. The country is still … of Iceland (CBI) saw the systemic risks created by lending to owners and related parties, which increased greatly from … countries had the resources to bail out their irresponsible and illiquid banks, Iceland did not, and it received little foreign …
Persistent link: https://www.econbiz.de/10013072334
Persistent link: https://www.econbiz.de/10011602487
The paper employs a unique identification strategy that links survey data on household consumption expenditure to bank level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures. Specifically, we show that households whose banks were...
Persistent link: https://www.econbiz.de/10010226536
We employ a unique identification strategy linking survey data on household consumption expenditure to bank-level data to estimate the effects of bank financial distress on consumer credit and consump- tion expenditures. We show that households whose banks were more exposed to funding shocks...
Persistent link: https://www.econbiz.de/10012061065
This paper analyses macroeconomic and financial determinants of bad loans applying a SVAR approach to investigate whether excessive loans granted during expansionary phases can explain the more than proportional increase in non-performing loans during contractionary periods. The results indicate...
Persistent link: https://www.econbiz.de/10009763782
This paper compares the stability of the U.S. Dual Banking system's two bank groups, national and state banks, in light of the global financial crisis 2007/2008. The goal of the paper is to answer three distinct questions: first, is there a difference in the (balance sheet-) fragility between...
Persistent link: https://www.econbiz.de/10013122268
This paper examines whether the composition of a country's external liabilities and assets has an incidence on its risk of suffering financial turmoil. Particular emphasis is put on the role of international financial integration, using newly-constructed measures of contagion shocks. These new...
Persistent link: https://www.econbiz.de/10013103604
This paper develops a macroeconomic model with a banking sector in which banks face endogenous borrowing constraints. There is no uncertainty about economic fundamentals. Banking bubbles can emerge through a positive feedback loop mechanism. Changes in household confidence can cause the collapse...
Persistent link: https://www.econbiz.de/10013107959
The paper develops an early-warning model for predicting vulnerabilities leading to distress in European banks using both bank and country-level data. As outright bank failures have been rare in Europe, the paper introduces a novel dataset that complements bankruptcies and defaults with state...
Persistent link: https://www.econbiz.de/10013074637
Based on a detailed trade-level dataset, we analyze the proprietary trading behavior of German banks in the months directly preceding and following the Lehman collapse in September 2008. The default of Lehman Brothers was a shock to the German banking system that was both unexpected and...
Persistent link: https://www.econbiz.de/10012952017