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Credit risk arises because of the possibility that promised cash flows on financial claims held by banks and other financial institutions (BOFIs) will not be paid in full. Virtually all BOFIs face this risk. BOFIs are operating in markets with asymmetric information wherein prospective borrowers...
Persistent link: https://www.econbiz.de/10012961936
to provide a liquidity buffer that influences bank-specific loan growth positively (complementarity effect), particularly … in new banking regulation that penalise bank size …
Persistent link: https://www.econbiz.de/10012901000
We examine the roles of information sharing, strength of legal rights and bank size on the procyclical effect of bank …
Persistent link: https://www.econbiz.de/10012936121
the corresponding impact on the bank's profitability and lending behavior. It also seeks to investigate the macroeconomic …
Persistent link: https://www.econbiz.de/10012826179
to fail. Failure of a bank may trigger formal insolvency (resolution) proceedings, if there is no available option to … save it as a going concern. Bank insolvency proceedings comprise various mechanisms, instruments, and transactions to … enable resolution authorities to properly deal with a failed bank. Bank restructuring within insolvency proceedings means …
Persistent link: https://www.econbiz.de/10013052778
In this study we disentangle two dimensions of banks' systemic risk: the level of bank tail risk and the linkage … between a bank's tail risk and severe shocks in the financial system. We employ a measure of the systemic risk of financial … bank characteristics are related to bank tail risk and systemic linkage. The interrelationship between bank characteristics …
Persistent link: https://www.econbiz.de/10013045729
This paper investigates how depositor information problems affect bank reporting quality. Using plausibly exogenous …
Persistent link: https://www.econbiz.de/10012924800
Since the 2008 Financial Crisis, stress tests based on extreme-yet-plausible scenarios have become a preferred method of assessing risk for large financial institutions, yet scenario choice has largely been ad-hoc. We propose a principled methodology to choose scenarios by minimizing the...
Persistent link: https://www.econbiz.de/10013238231
The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification … (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the ….e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the …
Persistent link: https://www.econbiz.de/10013257333
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