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liquidity provision and the roles of the public budget and the central bank. The comparison also reveals that the role of fiscal … financial stability. This paper extends the existing research by zooming in on the specific topic of liquidity provision to … banks in resolution. It examines the provision of liquidity in the United States, the United Kingdom, Japan, Canada and the …
Persistent link: https://www.econbiz.de/10012319162
Banks fulfill special functions in an economy. The primary objective of a bank insolvency regime must be to preserve … these essential functions. This objective should guide the design of the legal framework for bank insolvency. The banking … supervisory authority or a designated resolution authority have a key role in the bank insolvency procedure. Their statutory …
Persistent link: https://www.econbiz.de/10013130770
of bank crisis management. Bail-in enables a country’s banking authorities to force a failing bank’s immediate … banking authorities of the Member States can apply for the resolution of failing banks in accordance to the Bank Recovery and … bank’s restructuring …
Persistent link: https://www.econbiz.de/10013298396
national liquidity requirements to proxy for banks' incentives to exploit this differential treatment of central bank eligible …We analyze the pledging behavior of Euro area banks during the introduction of the liquidity coverage ratio (LCR). The … LCR considers only a subset of central bank eligible assets and thereby offers banks an arbitrage opportunity to improve …
Persistent link: https://www.econbiz.de/10011994641
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...
Persistent link: https://www.econbiz.de/10011974655
The theory of financial intermediation highlights various channels through which capital and liquidity are interrelated …. Using a simultaneous equations framework, we investigate the relationship between bank regulatory capital and bank liquidity … determinants of bank capital buffer has neglected the role of liquidity. On the whole, we find that banks decrease their regulatory …
Persistent link: https://www.econbiz.de/10013092679
through risk-reflecting prices for bank capital. The main reason for this lies in the avoidable embeddedness of the BRRD … approach that seeks to disentangle private sector involvement as a precondition for effective bank-resolution as much as …
Persistent link: https://www.econbiz.de/10011711663
This paper analyzes the bail-in tool under the Bank Recovery and Resolution Directive (BRRD) and predicts that it will … establishing adequate market discipline through risk-reflecting prices for bank capital. The main reason for this lies in the … bank’s balance sheet should be subjected to bail-in is misguided. Instead, a concentration of PSI in instruments that fall …
Persistent link: https://www.econbiz.de/10011720764
On 16th November 2009, SUERF, CEPS and the Belgian Financial Forum coorganized a conference "Crisis management at cross-roads" in Brussels. All papers in the present volume are based on contributions at the conference and the SUERF Annual Lecture which followed the event.
Persistent link: https://www.econbiz.de/10011706117
We quantify the gains from regulating banks' maturity transformation in an infinite horizon 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...
Persistent link: https://www.econbiz.de/10012980515