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the Basel III standards – that is, the new capital and liquidity requirements - are expected to have on the domestic and … movements in the European money and capital markets, and to a greater extent due to impacts directly through parent banks. It is …
Persistent link: https://www.econbiz.de/10008852913
Abstract: Banking crises involve periods of persistently low credit and economic growth. Banks’ balance sheets are then weak but so are those of non-financial corporate borrowers. Hence, a crucial question is whether credit growth is low due to supply or to demand factors. However convincing...
Persistent link: https://www.econbiz.de/10011092853
institutions relative to the new rules on capital and liquidity. The exercise paints a picture of broad compliance with the …After a decade of deep transformation, which influenced both lending policies and risk management, Italy�s mutual … prudential targets, although some elements warrant greater attention. On the one hand, although the banks� capital endowment is …
Persistent link: https://www.econbiz.de/10011100363
regulatory capital and risk-weighted assets and assessing their positioning with respect to future leverage and liquidity … June 2012, show that capital and liquidity positions relatively to the Basel 3 targets have improved considerably over the … interpreted as a forecast of capital and liquidity needs as they do not incorporate any assumption about future balance …
Persistent link: https://www.econbiz.de/10011100377
This technical note explains stress testing for Portugal’s financial sector. A core part of the banking stress tests was the bottom-up exercise implemented by individual institutions. The bottom-up stress tests focus only on the impact of expected losses on indicators of profitability and...
Persistent link: https://www.econbiz.de/10011242748
the outcome has been a robust and high-quality implementation that has built upon and substantially strengthened the risk-management … major implementation effort. APRA’s analysis of the adequacy of capital for systemically relevant banks is sound. …
Persistent link: https://www.econbiz.de/10011243662
This Selected Issues paper discusses capital and liquidity regulations in Sweden. It recaps the recent debates on … capital and liquidity buffers, and discusses a way to consider appropriate levels of capital and liquidity buffers in the case … of Sweden. The paper estimates the government’s contingent liabilities from banks by different capital and liquidity …
Persistent link: https://www.econbiz.de/10011244133
structural liquidity positions in 2007Q2 to estimate the impact of exposure to market freezes during 2007–08 on the supply of … particular, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of … credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …
Persistent link: https://www.econbiz.de/10011142046
liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare … lending, efficiency and welfare significantly. The costs of high capital and liquidity requirements represent a lower bound on …, with their benefits turning into costs beyond a certain requirement threshold. By contrast, liquidity requirements reduce …
Persistent link: https://www.econbiz.de/10011142059
banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability …. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity … and takes excessive risk compared to the social optimum. A Lender of Last Resort can alleviate the liquidity problem, but …
Persistent link: https://www.econbiz.de/10011092076