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The rents of banking : a public choice approach to bank regulation

Buck, Florian Christopher - 2015

the costs of banking regulation (and on the social value of making credit available to selected borrowers) incentivizes … steering of credit flows and most importantly the provision of an underpriced safety net for the banking business. However … dem Hintergrund der Public Choice-Theorie versucht die vorliegende Arbeit diesen Trend als Resultat politischer …

Persistent link: https://www.econbiz.de/10011742914

Interconnected Banks and Systemically Important Exposures

Roncoroni, Alan - 2019

We study the interplay between two channels of interconnectedness in the banking system. The first one is a direct interconnectedness, via a network of interbank loans, banks' loans to other corporate and retail clients, and securities holdings. The second channel is an indirect...

Persistent link: https://www.econbiz.de/10012858962

Systemic risk in a network model of interbank markets with central bank activity

Georg, Co-Pierre; Poschmann, Jenny - 2010

The breakdown of the interbank money markets in the face of the recent financial crisis has forced central banks and governments to take extraordinary measures to sustain financial stability. In this paper we investigate which influence central bank activity has on interbank markets. In our...

Persistent link: https://www.econbiz.de/10003971540

Liquidity in resolution : estimating possible liquidity gaps for specific banks in resolution and in a systemic crisis

Amamou, Raschid; Baumann, Andreas; Chalamandaris, Dimitrios - 2020

This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under different assumptions and scenarios. The findings suggest...

Persistent link: https://www.econbiz.de/10012313295

Intermediation via Credit Chains

He, Zhiguo; Li, Jian - 2021

degree of credit/maturity transformation. We develop a dynamic model in which an entrepreneur borrows from overlapping …-generation households via layers of funds, forming a credit chain. Each intermediary fund in the chain faces rollover risks from its lenders …. We show that the equilibrium chain length minimizes the run risk for any given contract and find that restricting credit …

Persistent link: https://www.econbiz.de/10013314682

Risk-sharing and contagion in networks

Cabrales, Antonio; Gottardi, Piero; Vega-Redondo, Fernando - 2014 - This version: January 15, 2014

We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays "fat" tails, extreme segmentation into small components is optimal, while minimal...

Persistent link: https://www.econbiz.de/10010260030

Contagion risk in the interbank market : a probabilistic approach to cope with incomplete structural information

Montagna, Mattia; Lux, Thomas - 2014

Banks have become increasingly interconnected via interbank credit and other forms of liabilities. As a consequence of …

Persistent link: https://www.econbiz.de/10010373653

Contagion risk in the interbank market : a probabilistic approach to cope with incomplete structural information

Montagna, Mattia; Lux, Thomas - 2014

Banks have become increasingly interconnected via interbank credit and other forms of liabilities. As a consequence of …

Persistent link: https://www.econbiz.de/10010406753

Contagious Herding and Endogenous Network Formation in Financial Networks

Georg, Co-Pierre - 2014

When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...

Persistent link: https://www.econbiz.de/10013051175

Risk-Sharing and Contagion in Networks

Cabrales, Antonio - 2014

We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays “fat” tails, extreme segmentation into small components is optimal, while minimal...

Persistent link: https://www.econbiz.de/10013055377