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This article discusses some policy options that central banks may find useful in dealing with climate change risk in … studies that suggest policy solutions to help central banks and other financial sector regulators deal with the risk that … change capital surcharge; impose a fixed-rate risk capital - based on Tier 2 capital; a reduction in lending to industries …
Persistent link: https://www.econbiz.de/10013240468
The determinants of default risk of banks in emerging economies have so far received inadequate attention in the … to be stable in containing bad debts, as they have better risk management procedures and technology, which definitely …
Persistent link: https://www.econbiz.de/10010507831
This paper studies the extent to which monetary policy may affect banks' perception of credit risk and the way banks … measure risk under the internal ratings-based approach. Specifically, we analyze the effect of different monetary policy … indicators on banks' risk weights for credit risk. We present robust evidence of the existence of the risk-taking channel in the …
Persistent link: https://www.econbiz.de/10011786136
On December 16th of 2015, the Fed initiated "liftoff," raising the federal funds rate range by 25 basis points and ending a 7-year regime of near-zero rates. We use a unique dataset of 640,000 loan-hour observations to measure the impact of liftoff on interest rates in the peer-to-peer lending...
Persistent link: https://www.econbiz.de/10011457389
We address the question to what extent a central bank can de-risk its balance sheet by unconventional monetary policy … operations. To this end, we propose a novel risk measurement framework to empirically study the time-variation in central bank … generated beneficial risk spill-overs across monetary policy operations, causing overall risk to be nonlinear in exposures. Some …
Persistent link: https://www.econbiz.de/10011959298
regulation, recovery and resolution, and risk culture. …
Persistent link: https://www.econbiz.de/10011557140
recurrence of crises reflects a basic procyclicality in the system, which is characterized by a build-up of risk-taking and … leverage in good times and an abrupt withdrawal from risk and an unwinding of leverage in bad times. To deal with the adverse … for risk-taking may be aligned more properly and areas where risk management may be made more robust. Nonetheless a …
Persistent link: https://www.econbiz.de/10003855412
We find evidence that the Federal Reserve stress tests (CCAR and DFAST) produce information about the stress-tested firms as well as other, non-stress-tested banking companies. Although standard event studies do not always show abnormal returns for the stress-tested sample on average, we argue...
Persistent link: https://www.econbiz.de/10011342852
eliminates failures but stops lending for larger liquidity risks whereas a liquidity ratio might be a way to reduce risk …
Persistent link: https://www.econbiz.de/10010341626
After the destructive impact of the global financial crisis of 2008, many believe that pre-crisis financial market 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...
Persistent link: https://www.econbiz.de/10011477338