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This paper proposes a stylized sequencing of banking supervision and bank restructuring measures designed to complement … because the initial cost of bank restructuring can be offset, partly, through the budgetary effects of improved enterprise …
Persistent link: https://www.econbiz.de/10014395923
This study investigates the relationship between production efficiency in financial intermediation and financial system size. The study predicts and tests for the existence of ""systemic scale economies"" (SSEs), whereby value-maximizing intermediaries operating in large systems are expected to...
Persistent link: https://www.econbiz.de/10014399577
We examine empirically the episode of extraordinary turbulence in global financial markets during 1998. The analysis focuses on the market assessment of credit risk captured by daily movements in bond spreads for twelve countries. A dynamic latent factor model is estimated using indirect...
Persistent link: https://www.econbiz.de/10014399584
Since the mid-1990s, economic observers have kept a watchful eye on the financial sector because of its potential to spark economic crises. Banks in particular have come under close scrutiny. Building Strong Banks through Surveillance and Resolution offers guidance on setting up regulatory and...
Persistent link: https://www.econbiz.de/10014399628
can predict a negative relationship between concentration and bank loan-to-asset ratios, and a nonmonotonic relationship … between bank concentration and profitability. We explore these predictions empirically using a cross-sectional sample of about …, loan-to-asset ratios are negatively and significantly related to concentration, and bank profits are positively and …
Persistent link: https://www.econbiz.de/10014399669
quantity, banks control firms'' investments. Each bank forms a firm group endogenously and internalizes externalities directly …
Persistent link: https://www.econbiz.de/10014399670
We argue that firm interdependencies, as measured by correlations of stock returns, provide an indicator of systemic risk potential. We find a positive trend in stock return correlations net of diversification effects for a sample of U.S. Large and Complex Banking Organizations over 1988-99....
Persistent link: https://www.econbiz.de/10014399710
Using monthly data for a set of variables, we examine the out-of-sample performance of various variance/covariance models and find that no model has consistently outperformed the others. We also show that it is possible to increase the probability mass toward the tails and to match reasonably...
Persistent link: https://www.econbiz.de/10014399716
greater interest rate competition. Lack of bank deposit market power, including through capital account mobility, may lessen …
Persistent link: https://www.econbiz.de/10014399825
system in Malawi. The financial reform program commenced in 1989 when both the Reserve Bank Act and the Banking Act were … power, high reserve requirements, high central bank discount rate and high inflation …
Persistent link: https://www.econbiz.de/10014399917