We quantify the gains from regulating maturity transformation in a model of banks which finance long-term assets with non-tradable debt. Banks choose the amount and maturity of their debt trading off investors' preference for short maturities with the risk of systemic crises. Pecuniary...

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...

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...

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...

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...

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...

Stress testing served us well as a crisis management tool, and we see it applied increasingly to peacetime oversight of banks and banking systems. Stress testing is rapidly become the dominant supervisory tool on both sides of the Atlantic. Yet the objectives and certainly the conditions are...

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...