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The global financial crisis underlined that sound and effective bank regulation is vital to financial stability … outbreak. The crisis reflected the failure of regulatory authorities to keep pace with financial innovation. Bank supervision … had been weak by any measure. Supervisors did not conduct regular onsite bank inspections or examinations of sufficient …
Persistent link: https://www.econbiz.de/10011305260
no comparable political and legal integration. Nevertheless, Asia can draw useful lessons from European experiences in …
Persistent link: https://www.econbiz.de/10011561790
framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …
Persistent link: https://www.econbiz.de/10012009213
We investigate the risk taking incentives of "stressed banks" - the banks that are subject to annual regulatory stress tests in the U.S. since 2011. We document that stress tests effectively encourage prudent investment from stressed banks through regulatory monitoring, but also provide them...
Persistent link: https://www.econbiz.de/10011874856
This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …
Persistent link: https://www.econbiz.de/10010424982
We review heterogeneous agent-based models of financial stability and their application in stress tests. In contrast to the mainstream approach, which relies heavily on the rational expectations assumption and focuses on situations where it is possible to compute an equilibrium, this approach...
Persistent link: https://www.econbiz.de/10011906282
examining financial soundness and identifying its determinants. Using data from selected developing economies in Asia, South …
Persistent link: https://www.econbiz.de/10010529694
develops a methodology to detect problems at the individual bank level in an effort to identify those firms with financial … facilitate bank monitoring tasks, as well as some disaggregated subcomponents that are intended to display the relative …
Persistent link: https://www.econbiz.de/10011283443
Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the …
Persistent link: https://www.econbiz.de/10014334373
. However, their very success in taming the collapse reduced efforts to radically change the "big bank" business model and …
Persistent link: https://www.econbiz.de/10011546673