This paper investigates the soundness and performance of the banking systems from seven non-euro EU countries, outlining the particularities of each sector. Another objective of this paper is to examine the main determinants of bank soundness in the Romanian sector, taking into consideration...

Commercial banks and co-operative banks are credit institutions, but there are some differences between the main operations proceeded by each of them. Based on these specific characteristics, we want to identify the manner in which financial crisis affected their activity. As we all know, the...

The financial crisis revealed serious imperfections in the integrity of the financial system, exposing major cases of fraud and conflict of interest. This integrity deficitis a cause for con-cern,given the roles of the information in the decision making process and on the financial-market....

The article aims to highlight the measures adopted in the financial-banking system in the context of the European integration, according to risk analysis perspectives. The first part provides details on the vulnerability sources in terms of banking risks and their approach from various...

This paper aims at shedding some light on the mechanisms of pricing the EMU countries’ sovereign bonds in financial markets. Employing the Augmented Mean Group (AMG) estimator, we find that major changes have occurred in terms of variables underlying sovereign risk. Since 2009, macroeconomic...

Deteriorating public finances around the world raise doubts about countries’ abilities to bail out their largest banks. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank stock prices and CDS spreads. Overall, bank stock...

Do lending relationships mitigate credit rationing? Does securitization influence the impact of lending relationships on credit rationing? If so, is its impact differently in normal periods versus crisis periods? This paper combines several unique data sets to address these questions. Employing...

Abstract: This paper analyzes the net impact of two opposing effects of active risk management at banks on their stability: higher risk-taking incentives and better isolation of credit supply from varying economic conditions. We present a model where banks actively manage their portfolio risk by...

We propose a model in which firms involved in trading securities overinvest in financial expertise. Intermediaries or traders in the model meet and bargain over a financial asset. As in the bargaining model in Dang (2008), counterparties endogenously decide whether to acquire information, and...

This paper examines the implications of bank activity and short-term funding strategies for bank risk and return using an international sample of 1334 banks in 101 countries leading up to the 2007 financial crisis. Expansion into non-interest income generating activities such as trading...