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We investigate the risks and opportunities to the mandates of central banks arising from fintech developments. Fintech may affect the different areas of responsibility of central banks - mainly monetary policy and financial stability - by changing money demand and by changing the industrial...
Persistent link: https://www.econbiz.de/10011689315
This paper analyses the consequences for monetary policy in the presence of currencies issued by firms. Such currencies generate seignorage revenues and information on consumers. In a benchmark model of imperfectly competing firms, information breaks the usual portfolio indeterminacy as in...
Persistent link: https://www.econbiz.de/10013322561
We present a theory in which the key driver of short-term debt issued by the financial sector is the portfolio demand for safe and liquid assets by the nonfinancial sector. This demand drives a premium on safe and liquid assets that the financial sector exploits by owning risky and illiquid...
Persistent link: https://www.econbiz.de/10011412482
that hit a concentrated and fragile banking distribution cause significantly larger recessions. A persistent consolidation … in the U.S. banking sector that matches the one observed over 1980-2020 generates a large economic contraction and an … model to identify and characterize episodes of systemic banking crises. Such events are associated with large economic …
Persistent link: https://www.econbiz.de/10013236156
We reconsider the role of financial intermediaries in monetary economics, and explore the hypothesis that the financial intermediary sector is the engine that drives the financial cycle through fluctuations in the price of risk. In this framework, balance sheet quantities emerge as a key...
Persistent link: https://www.econbiz.de/10014025668
Based on a review of the analytical underpinnings of the effects of the NSFR on banks' choices, this paper attempts to relate banks' strategies to developments in the value of the ratio in the euro area. In spite of a not-so-near implementation date, the evidence is that the NSFR already matters...
Persistent link: https://www.econbiz.de/10013071580
.S. banking system are hedged by interest rate swaps. We also find limited hedging of interest rate exposure by publicly traded …
Persistent link: https://www.econbiz.de/10014355378
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
heterogeneity in the transmission of monetary policy across the three types of institutions, across the three banking systems, and … across banks within each banking system. While insurance companies and pension funds do not transmit home-country monetary …
Persistent link: https://www.econbiz.de/10011859474
How do banks transmit long-term central bank liquidity injections to borrowers? We exploit unique variation in how the ECB's 2011-12 Long-Term Refinancing Operations (LTROs) affected lending to firms discontinuously across credit ratings (within banks) to make four contributions. (i) We show the...
Persistent link: https://www.econbiz.de/10012900335