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The recent financial crisis that began in 2007, also known as the Global Financial Crisis, had a huge influence on the financial situations of enterprises and financial institutions around the world. The situation on world stock markets was also strongly affected by the crisis. As the behavior...
Persistent link: https://www.econbiz.de/10011900024
We analyze the main forces affecting financial system pro-cyclicality (the fact that developments in the financial sector can amplify business cycle fluctuations). We first review some major structural developments in financial markets that may influence pro-cyclicality and that have been...
Persistent link: https://www.econbiz.de/10014203653
It is well known fact that all good things, as also bad things, come to an end and business cycles pass through good and bad economic times. Economically 2010 was a year of transition from economic recession to recovery. Economies were improving in some countries and industries were showing...
Persistent link: https://www.econbiz.de/10013110884
The central problem for financial regulation is reducing systemic risk. Systemic risk is the risk that the failure of one significant institution can cause or significantly contribute to the failure of other significant institutions. This paper addresses the five most important policies for...
Persistent link: https://www.econbiz.de/10013143703
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
triggers, such as capital ratios of banks, are reached. These have the potential of providing an automatic source of liquidity … without having to go through bankruptcy or getting bailouts' money. We present a model of liquidity with two types of … the other produces liquidity via an elastic supply of funds but with much less information. The model generates a critical …
Persistent link: https://www.econbiz.de/10013101696
We provide the first empirical evidence of a non-linear relationship between funding liquidity and market liquidity (FL …-ML). The relationship depends on the state of business cycle, firm volatility, and the regulatory regime. Due to heightened …
Persistent link: https://www.econbiz.de/10013093691
aggressive use of both traditional monetary policy instruments and innovative tools in an effort to provide liquidity. In this …
Persistent link: https://www.econbiz.de/10013156383
We examine impediments to liquidity provision by mutual funds to insurance companies during corporate bond fire sales …. We find that financial regulation and limited capital capacity significantly affect liquidity provision. Mutual funds … risk, and less active investment styles) provide less liquidity. Mutual funds actively investing in fire sale bonds earn …
Persistent link: https://www.econbiz.de/10012904096
banking sector offering deposit contracts. In a setting related to Allen and Gale (1998) properties of the optimal liquidity … combination of providing additional liquidity and supporting distressed financial institutions implements the regulatory policy …
Persistent link: https://www.econbiz.de/10012870681