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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
This paper documents large cross-country variation in the relationship between bank competition and bank stability and …
Persistent link: https://www.econbiz.de/10013114400
This paper documents large cross-country variation in the relationship between bank competition and bank stability and …
Persistent link: https://www.econbiz.de/10013115499
We present a model in which shadow banking arises endogenously and undermines market discipline on traditional banks. Demandable deposits impose market discipline: Without shadow banking, traditional banks optimally pursue a safe portfolio strategy to prevent early withdrawals. Shadow banking...
Persistent link: https://www.econbiz.de/10012900681
since the financial crisis of 2007-08 to address weaknesses in bank risk culture. The paper suggests that shortcomings in …
Persistent link: https://www.econbiz.de/10012894261
We analyze whether variation in systemic risk in the banking system (also known as “bank systemic risk”) can explain … period 1990–2013, bank systemic risk is positively associated with the corporate investment, after controlling for a large … financial crisis of 2007 and that the effect becomes negative after 2007. We show that the influence of bank systemic risk on …
Persistent link: https://www.econbiz.de/10012971426
Banks are growing ever larger compared to their national economies. We show that increases in relative bank size … (measured as a bank's liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not …, or banking crises. Instead, we detect a persistent component in the tail risk of relatively large banks that is bank …
Persistent link: https://www.econbiz.de/10012974803
a tax onshadow bank profits …
Persistent link: https://www.econbiz.de/10012929925
This paper examines the Leverage Ratio and Total Capital Ratio of global versus non-global banks in both the pre- and post-crisis periods. A panel data set of 165 global and non-global financial institutions from 38 countries is used for the period 1999-2015 and a random effects model is...
Persistent link: https://www.econbiz.de/10012549173
Since the European debt crisis economists and politicians discuss intensively the sovereign-bank nexus. The high … exposure on bank stability. This paper provides a new way to use European stress test data to study this relationship. In … addition, we explore the effect on a bank’s probability of default if the existing capital requirement privilege for EU …
Persistent link: https://www.econbiz.de/10012510319