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In this paper, I suggest that the regulation of the financial system, especially if the aim is to prevent financial crises, should be focused on dealing with the consequences of the crises, not on trying to avoid their causes, although it may seem counterintuitive at first sight. Contrary to the...
Persistent link: https://www.econbiz.de/10013061343
Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can emerge, depending on the magnitude of liquidity risks....
Persistent link: https://www.econbiz.de/10010341626
Are bank resolution regimes effective enough to improve financial stability? We look at the effect of the new bank resolution reforms on the systemic risk of big financial conglomerates. We find that in developed countries, parents in a stricter resolution regime have lower systemic risk...
Persistent link: https://www.econbiz.de/10013293062
recent financial crisis. The crisis sparked a growing interest in understanding how and why we have created a world of large … Finanzkrise viel Aufmerksamkeit bei Politikern und Wirtschaftswissenschaftlern erfahren. Wie und warum konnte es zur Entstehung … geschaffenen Renten des Bankensektors. Die Arbeit diskutiert die zentralen Wechselwirkungen zwischen Bankenregulierung …
Persistent link: https://www.econbiz.de/10011742914
The paper explores a different, supplementary way to assess and manage a particular type of banking crises, those arising from a rise of nonperforming loans to the corporate sector. It relies on a 'national wealth approach,' focusing on the distribution of net wealth among economic sectors and...
Persistent link: https://www.econbiz.de/10012977848
Inadequate regulation of the financial system is widely thought to have contributed to the financial crisis. The purpose of the book is to articulate a framework within which financial regulation can be analysed in a coherent and comprehensive fashion. The book's approach is distinctive in...
Persistent link: https://www.econbiz.de/10012937668
Did policy interventions contribute to the gradual segmentation of lending markets starting with the 2007 - 2008 global financial crisis? We investigate this question in an international Cournot duopoly model under an equity constraint. Two symmetric multinational banks compete for corporate...
Persistent link: https://www.econbiz.de/10012240769
Intervention has taken different forms in different countries and periods of time. Moreover, the high interconnection of financial institutions makes the (implicitly or explicitly) promise of no intervention made by governments barely credible. Moreover, it is largely claimed that these...
Persistent link: https://www.econbiz.de/10012974864
analysis combines bank balance sheet information from 92 countries with Fitch Support Ratings and World Bank survey data on …
Persistent link: https://www.econbiz.de/10013049033
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