Even as banks have decreased their exposure to residential mortgage loans since 2008, bank exposure to leveraged lending has risen dramatically. The $1 trillion total asset leveraged loan market poses a significant and growing source of credit risk to U.S. depository institutions and investors....

This paper traces the roots of collateral flow and its potential vulnerabilities in the shadow banking system to their regulatory capital treatment in the banking sector. As part of assessing the interaction of banking regulation and the shadow banking sector, it investigates the impact of bank...

This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility. To maintain the...

Following the financial crisis, the view became widespread that IFRS, because it is based on a so-called incurred-loss approach, led to significant overstatements of financial assets by placing tight restrictions on the recognition of loan losses. As a result, the IASB undertook a project to...

The study examines the essence of preliminary risk assessment in project finance; identifies the typical project risk at start-up and its mitigation; analyzes financial and political risks surrounding a project and the determines a lenders position in the midst of risk. The main purpose of...

The author compares the U.S. with other G-10 countries regarding key aspects of permissible banking activities. One conclusion is that banks in the U.S. face greater restrictions, and possibly more intensive supervisory oversight, than do banks in most other G-10 countries. Second, the majority...

We gather the most comprehensive database of government bonds for the first globalisation era to date to conduct the first historically informed study of the importance of liquidity for colonial and sovereign yield spreads. Considering both liquidity and credit shows that the two markets were...

This research paper outlines some of the issues facing investors in mortgage servicing rights (MSRs) and/or creditors holding security interests against these intangible assets or the underlying collateral. These issues include swings in the valuation of the MSR, repayments of loans in the...

The paper studies the impact of bank specific, industry specific and macroeconomic factors affecting profitability of Indian Banks in a dynamic model framework. The persistence of bank profits and endogeneity of the factors have been accounted for using Generalised Method of Moments (GMM) as...

Although credit rating agencies have gradually moved away from a policy of never rating a corporation above the sovereign (the ‘sovereign ceiling’), it appears that sovereign credit ratings remain a significant determinant of corporate credit ratings. We examine this link using data for...