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This paper proposes a framework for modelling financial contagion that is based on SIR (Susceptible-Infected-Recovered) transmission models from epidemic theory. This class of models addresses two important features of contagion modelling, which are a common shortcoming of most existing...
Persistent link: https://www.econbiz.de/10013083449
We propose in this paper a simulation framework of pandemic in financial system composed of banks, asset markets and interbank markets. This framework aims at complementing the usual stress-test strategies that evaluate the impact of shocks on individual balance-sheets without taking into...
Persistent link: https://www.econbiz.de/10012963082
resolution framework amidst the pandemic crisis (Christos V. Gortsos)12 Lending activity in the time of coronavirus (Concetta …
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and small and medium sized enterprises (SMEs), including the sectors most affected by COVID-19. Access to resolution … application of different conditions for access to resolution financing and the provision of public support, depending on whether … overhaul of the public interest test and the development of a homogeneous set of resolution-like tools to smaller banks (under …
Persistent link: https://www.econbiz.de/10012825469
We see spikes in unemployment rates and turbulence in the securities markets during the COVID-19 pandemic. Governments are responding with aggressive monetary expansions and large-scale economic relief plans. We discuss the implications on banks and the economy of prudential regulatory...
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