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The application, or to be more precise, the misapplication of securitization in the mortgage market had fatal consequences for the financial sector worldwide. More over securitization techniques enabled single banks to reduce their individual risk while at the same time transferred greater risk...
Persistent link: https://www.econbiz.de/10011459525
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 show that market discipline, defined as the extent to which firm specific risk characteristics are re ected in market prices, eroded during the recent financial crisis in 2008. We design a novel test of changes in market discipline based on the relation between firm specific risk...
Persistent link: https://www.econbiz.de/10010226557
drawing useful lessons for regulatory reform. We argue that an important contributor to positive bank performance was a solid …
Persistent link: https://www.econbiz.de/10010227291
This paper examines the impact of charter type, holding company structure, and measures of bank fragility on the … likelihood of a bank bailout or failure during the late 2000s financial crisis. The empirical results indicate that established … brokered deposits, and held a relatively large portfolio of real estate loans. In addition, bank failure was more likely for …
Persistent link: https://www.econbiz.de/10013008003
This paper investigates the effectiveness of supervisory discipline on bank risk over the years immediately before … public. Access to this information allows a complete analysis of the effects of regulatory enforcement actions on bank … effective tool for slowing declines in a bank's capital ratios and informal actions were relatively less potent. Post …
Persistent link: https://www.econbiz.de/10012943550
This paper considers the financial stability risks caused by Big Tech's entry into retail banking and discusses alternative policy responses aimed at allaying those concerns. The entry of Big Tech platforms may transform the retail banking industry in radical ways: while it may spur much-needed...
Persistent link: https://www.econbiz.de/10012836369
equity ratio, loan quality and bank size are the main determinants of bank bailout involvement. However, the aided banks … sufficient to restore bank health …
Persistent link: https://www.econbiz.de/10012934952
Purpose - The need for robust governance standards in financial institutions requires no overemphasis. However, instances of governance failures have been a recurring global phenomenon. This paper examines the key elements of governance in financial institutions, evaluates reasons for failures...
Persistent link: https://www.econbiz.de/10014449757
focuses on bank incentives to manage bad loans. We show that interventions involving bank recapitalizations provide banks with … undercapitalization of the banking sector, other interventions, such as guarantees on bank liabilities and liquidity support, lead banks … crisis, and find that bank recapitalizations substantially reduce recession duration …
Persistent link: https://www.econbiz.de/10014160201