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We quantify the gains from regulating maturity transformation in a model of banks which finance long-term assets with non-tradable debt. Banks choose the amount and maturity of their debt trading off investors' preference for short maturities with the risk of systemic crises. Pecuniary...
Persistent link: https://www.econbiz.de/10011974655
The paper examines the basic rationale and features of the proposals adopted to separate specific investment and commercial banking activities (Volcker rule, Vickers and Liikanen proposals). In particular, it focuses on the likely implications of such initiatives for: (i) financial stability and...
Persistent link: https://www.econbiz.de/10013081961
We investigate the relationship of central bank independence and banks' systemic risk measures. Our results support the … case for central bank independence, revealing that central bank independence has a robust, negative, and significant impact … on the contribution and exposure of a bank to systemic risk. Moreover, the impact of central bank independence is similar …
Persistent link: https://www.econbiz.de/10012232865
We evaluate the abnormal returns of issuing and non-issuing banks around the announcement of Seasoned Equity Offerings (SEOs) and explore how the market reaction is influenced by aggregate systemic conditions and by the systemic risk contribution and exposure of banks. While we find evidence of...
Persistent link: https://www.econbiz.de/10011791471
The global financial crisis led to an alleged end of global banking. However, we find that reports on the end of global banking are premature. Investigating the global systemically important banks, we identify a strong composition effect: a shift of business from the global European banks to the...
Persistent link: https://www.econbiz.de/10012961365
. Under a binding equity constraint, our model predicts shocks to bank equity, regulatory standards and monetary policy, such …
Persistent link: https://www.econbiz.de/10012240769
around the world to ensure global competitiveness of banks. Using an agent-based model of the financial system, we find that … homogeneous or bank-based financial systems, the most effective regulatory policy to ensure financial stability depends on the …
Persistent link: https://www.econbiz.de/10009554222
We develop a theoretical model examining the financial stability policy of a central bank serving as both the lender of … the existence of a substitution effect between reducing the expected scope of a central bank's assistance to an … institution in distress and increasing bank reserve requirements …
Persistent link: https://www.econbiz.de/10012969580
Are bank resolution regimes effective enough to improve financial stability? We look at the effect of the new bank …
Persistent link: https://www.econbiz.de/10013293062
We investigate the relationship of central bank independence and banks’ systemic risk measures. Our results support the … case for central bank independence, revealing that central bank independence has a robust, negative, and significant impact … on the contribution and exposure of a bank to systemic risk. Moreover, the impact of central bank independence is similar …
Persistent link: https://www.econbiz.de/10013244284