The new era of Post-Washington Consensus (PWC) promoted under the auspices of multilateral organizations such as IMF and the World Bank centres on the need to develop strong regulatory institutions, especially the realm of banking and finance in developing countries. By focusing on the Turkish...

To what extent was the credit contraction during the global financial crisis due to more intense screening and monitoring by banks? We address this question by analysing changes in the structure of a large number of syndicated loans to private, non-financial corporations. We find an increase in...

In this paper, we argue for a regulatory framework under which a bank’s required level of equity capital depends on the equity capital of its peers. Such bankingon- the-average rules are transparent and could also be combined with the current regulatory framework. In addition, we argue that...

Trotz eines Konsolidierungsprozesses ist die Bankendichte in Deutschland hoch. Mitte der 2000er Jahre suchten die deutschen Banken nach Renditen im Ausland und waren daher von der Finanzkrise stärker als Banken anderer Euroländer betroffen. Die Europäische Kommission forderte daraufhin vor...

The Central European banking industry is dominated by foreign-owned banks. During the recent crisis, for the first time since the transition, foreign parent companies were frequently in worse financial conditions than their subsidiaries. This situation created a unique opportunity to study new...

We examine the effect of competition on banking stability using a new measure of competition based on the reallocation of profits from inefficient banks to efficient ones (Boone, 2008). Examining a sample of European banks, we show that this measure does capture competition, that competition is...

Cross-border banking activity within the Asia-Pacific region has intensified since the Great Financial Crisis of 2007−09. In the years leading up to the crisis, much of the cross-border activity in the region had been driven by dollar credit intermediated largely by European banks. In the wake...

Diversification through pooling and tranching securities was supposed to mitigate creditor runs in financial institutions by reducing their credit risk, yet many financial institutions holding diversified portfolios experienced creditor runs in the recent financial crisis of 2007-2009. We...

The Central European banking industry is dominated by foreign-owned banks. During the recent crisis, for the first time since the transition, foreign parent companies were frequently in a worse financial condition than their subsidiaries. This situation created a unique opportunity to study new...