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We develop a two-country DSGE model with global banks to analyze the role of crossborder banking flows on the transmission of a quality of capital shock in the United States to emerging market economies (EMEs). Banks face a moral hazard problem for borrowing from households. EME's banks might be...
Persistent link: https://www.econbiz.de/10011483678
We characterize how U.S. global systemically important banks (GSIBs) supply short-term dollar liquidity in repo and foreign exchange swap markets in the post-Global Financial Crisis regulatory environment and serve as the "lenders-of-second-to-last-resort". Using daily supervisory bank balance...
Persistent link: https://www.econbiz.de/10014048828
regulation. In part, this is due to their neglect of important regulatory choices, which policy-makers are therefore left to take …
Persistent link: https://www.econbiz.de/10010413174
regulation did not take the "big picture" of the system suffciently into account and, subsequently, financial supervision mainly … "missed the forest for the trees". As a result, the need for macroprudential aspects of regulation emerged, which has recently … macroprudential regulation in creating stable, yet effcient financial systems. At the same time, I emphasize the importance of …
Persistent link: https://www.econbiz.de/10011477338
This paper describes how behavioral elements are relevant to financial supervision,regulation, and central banking. It …
Persistent link: https://www.econbiz.de/10012912488
Can tight and centralized financial regulations prevent financial crises? Governments usually respond to financial crises with tightening and centralizing financial regulations. In this paper, we explore the historical parallels between the governmental responses to the financial crises at the...
Persistent link: https://www.econbiz.de/10013097966
This paper explores the interface between central banks and cryptocurrencies. Focusing on the European Central Bank (ECB), it identifies the potential threats that the rise of cryptocurrencies would pose to the basic and ancillary tasks of the ECB, in particular, its monetary policy operations...
Persistent link: https://www.econbiz.de/10012866515
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks,...
Persistent link: https://www.econbiz.de/10013466133
On 5-6 September 2012 SUERF held its 30th Colloquium "States, Banks, and the Financing of the Economy" at the University of Zürich, Switzerland. The papers included in this SUERF Study are based on contributions to the Colloquium. All the chapters in this publication discuss from different...
Persistent link: https://www.econbiz.de/10011711721
The World Financial Crisis has shaken the fundamentals of international banking and triggered a downward spiral of …
Persistent link: https://www.econbiz.de/10009244347