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The paper analyses the different approaches to measure the impact of funding and market liquidity risk in the economics … management perspective of liquidity risk. Liquidity risk does not need to be covered by equity but by an adequate volume of … liquid assets and highly liquid securities. This is the reason why the regulation of the liquidity risk in banking is focused …
Persistent link: https://www.econbiz.de/10013000608
Objective – This paper shows how leverage affects firm's fragility and financial soundness during financial and industry crises.Methodology/Technique – Long term inefficient and zombie firms are explored through the effects of leverage in additional tests.Findings – There are two main...
Persistent link: https://www.econbiz.de/10012909391
The term “financial psychopath” was coined after the financial crisis of 2007−2008. Intended as a term of derision, the media used it to negatively label financial professionals, rather than to draw a clinical profile. The expression succinctly conveys the widespread post−2008 public...
Persistent link: https://www.econbiz.de/10012954974
Standard or traditional finance research is based on the rational choice model that assumes market participants are fully rational, unbiased, emotionless, self-interested maximizers of expected utility. Recent research in behavioral finance recognizes that real-world investors and managers are...
Persistent link: https://www.econbiz.de/10013055742
We sketch out two basic paradigms informing banking practice: the economistic paradigm focusing on profit maximization and the humanistic one, serving the common good. We then highlight paradigmatic cases to explore how each of these business models fared during the quasi-natural experiment of...
Persistent link: https://www.econbiz.de/10013001908
Following the 2008 financial crisis the federal government made capital investments in more than 650 companies. The government's involvement was not limited to mere financial investment. In many cases, the government became involved with the corporations' board of directors. The Essay examines...
Persistent link: https://www.econbiz.de/10013124310
This paper aims to examine the underlying causes of the sharp reduction in bank lending, which in turn is highlighting some structural weaknesses of Italian firms and financial system. The structure of this paper is as follows. Section 1 introduces the paper. Section 2 analyzes some drivers of...
Persistent link: https://www.econbiz.de/10013053669
Multiple factors have influenced interest margins and administrative costs such as prices effects, volume effects, the asset and liability mixes and the restructuring of the banking system. At the same time expansionary monetary policy led to a decline in both interest revenues and interest...
Persistent link: https://www.econbiz.de/10012945295
Retail deposits represent about 30% of total European banking assets. The bulk of the balance sheet of banks (about 70%) comprise non-retail loans and deposits (e.g. interbank loans and deposits, loans and deposits from insurance corporations and pension funds and loans and deposits from...
Persistent link: https://www.econbiz.de/10012932442
risk management literature concluding that lurking risks can be converted into opportunities have unfortunately not … informed policy. The assumption of the risk as a burden, often leads economies to crises that undermine the development and … prosperity of states and citizens. In this context, this article aims at highlighting risk characteristics and presentation of …
Persistent link: https://www.econbiz.de/10011516800