Showing 1 - 10 of 1,337
This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G-SIBs) impacts the market value of large banks. We analyze the stock price reactions for the 300 largest banks from 52 countries across 12 relevant regulatory announcement and...
Persistent link: https://www.econbiz.de/10010412297
Persistent link: https://www.econbiz.de/10013138295
This paper discusses different approaches to theoretical and empirical models of bank defaults. Through constructed binary probabilistic models of defaults the paper reveals key factors which have an impact on the viability of Russian banks during the financial crisis of 2008 to 2009. Policy...
Persistent link: https://www.econbiz.de/10013096903
This article revisits the role of the Pecora hearings in exposing the practices that captured national attention at the height of the Depression and links those practices to the emerging literature that describes the role of financial complexity and outsized compensation packages in creating...
Persistent link: https://www.econbiz.de/10013099893
This study engages in a detailed analysis of interconnectedness (i.e., the linkage between financial institutions) in the context of the failure of Lehman Brothers in October 2008 and concludes that interconnectedness was not a major cause of the recent financial crisis.The study continues with...
Persistent link: https://www.econbiz.de/10013065034
We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We find that most banks do not experience funding declines...
Persistent link: https://www.econbiz.de/10013069667
While the direct effect of lender-of-last-resort (LOLR) facilities is to forestall the default of financial firms that lose funding liquidity, an indirect effect is to allow these firms to minimize deleveraging sales of illiquid assets. This unintended consequence of LOLR facilities manifests...
Persistent link: https://www.econbiz.de/10013072305
Persistent link: https://www.econbiz.de/10013159841
We present a model that describes how different types of bank regulation can interact to affect the likelihood of fire sales in a crisis. In our model, risk shifting motives drive how banks recapitalize following a negative shock, leading banks to concentrate their portfolios. Regulation affects...
Persistent link: https://www.econbiz.de/10012956306
We provide an extensive analysis of the payout policy of U.S. banks during the crisis to examine potential risk-shifting and signaling motives of banks. We estimate an empirical model of bank payouts to assess the extent to which changes in payouts are commensurate with worsening fundamentals....
Persistent link: https://www.econbiz.de/10012904206