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financial sector is intimately involved in the design of bailout packages; elsewhere it chooses to remain at arm's length. Such … design of bailout packages in favor of the industry. She demonstrates that financial institutions were most powerful in those … power to remain collectively inactive, she argues, has had important consequences for bailout arrangements and ultimately …
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The Power of Inaction -- Contents -- List of Figures and Tables -- List of Abbreviations -- 1. Bailout Games -- 2 …
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We propose a hypothetical distress insurance premium (DIP) as a measure of the European banking systemic risk, which integrates the characteristics of bank size, default probability, and interconnectedness. Based on this measure, the systemic risk of European banks reached its height in late...
Persistent link: https://www.econbiz.de/10012955367
Using a sample of European banks and a series of events affecting governments' finances, we conduct an event study to examine whether there is a relationship between governments' fiscal difficulties and banks' stock returns. We find a significant reaction of banks' stocks to news concerning...
Persistent link: https://www.econbiz.de/10012970198
This paper designs a systemic risk measure for the European banking system as a hypothetical distress insurance premium (DIP), which integrates economically the main characteristics of systemic risk — size, default probability, and interconnectedness. We further identify the individual...
Persistent link: https://www.econbiz.de/10012974805
-2008 financial crisis. Governments worldwide have launched a massive bailout package to support banks in distress. Using a probit … governance committee decrease the likelihood of banks participating in a bailout programme. Inversely, board independence, credit …
Persistent link: https://www.econbiz.de/10012987964
equity ratio, loan quality and bank size are the main determinants of bank bailout involvement. However, the aided banks …
Persistent link: https://www.econbiz.de/10012934952