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The failure of financial institutions is often depicted as an externally-driven event in which certain triggers almost inevitably lead to the collapse of the firm. In contrast, this paper views institutional failure as a multistage process in which precautionary measures taken by the firm can...
Persistent link: https://www.econbiz.de/10013089043
to fail. Failure of a bank may trigger formal insolvency (resolution) proceedings, if there is no available option to … save it as a going concern. Bank insolvency proceedings comprise various mechanisms, instruments, and transactions to … enable resolution authorities to properly deal with a failed bank. Bank restructuring within insolvency proceedings means …
Persistent link: https://www.econbiz.de/10013052778
This paper examines the negative externalities that may occur when a large bank fails, describes the nature of those externalities, and explores whether they may be greater in a case involving a large cross-border banking organization. The analysis suggests that the chief negative externalities...
Persistent link: https://www.econbiz.de/10003730539
discharge this role. Because debt absorbs losses only when the company is put into insolvency (bankruptcy) and states were … into equity (bail it in) in advance of insolvency. However, in a second phase of reform bail in debt bids fair to become a …
Persistent link: https://www.econbiz.de/10013014261
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
situation in the field of insolvency of companies. Assessments of the situation vary, and there are many reasons for this: the …
Persistent link: https://www.econbiz.de/10013216070
This paper examines the relationship between modern health pandemic crises and financial stability. Specifically, it collects data on 250,223 firms in 43 countries (or regions) during five modern pandemic crises, SARS (2003), H1N1 (2009), MERS (2012), Ebola (2014), and Zika (2016), and finds...
Persistent link: https://www.econbiz.de/10014258192
An extensive review of the evidence related to the 2007-09 crisis reveals that it was an insolvency risk crisis, not a …
Persistent link: https://www.econbiz.de/10012929698
We study the effect of financial distress in foreign parent banks on local SME financing in 14 central and eastern European countries during the early stages of the 2007-2008 financial crisis. We use survey data on applicant and non-applicant firms that enable us to disentangle effects driven by...
Persistent link: https://www.econbiz.de/10013143334