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We set out a stylised framework for the policies enacted to address the risks posed by systemically important institutions (SIIs) and to counter the too-big-to-fail (TBTF) problem, examining conceptually how far supervisory and resolution policies are complementary or substitutable. The...
Persistent link: https://www.econbiz.de/10015071011
In 2007 the world faced one of the biggest financial crises ever. It was the third important financial crisis in the last 12 years. Spillovers to the real economy and moral hazard behaviour of carpetbaggers resulted in enormous pressure on worldwide political institutions to approve a more...
Persistent link: https://www.econbiz.de/10013141598
avoid tampering with the corporate governance of banks. Allowing bank managers to protect their autonomy via contractual …
Persistent link: https://www.econbiz.de/10013095122
angesprochen, die Notwendigkeit einer staatlichen Regulierung wird stets betont. Bis zum Ausbruch der Krise zeigt der SVR … investment bank Lehman Brothers were not foreseeable. The council judges of course upon the latest state of scientific knowledge …
Persistent link: https://www.econbiz.de/10010357162
regulation may interfere with the central bank's influence on short-term money market rates. This paper tries to fill the gap in … understanding the interaction between the money market, the central bank, and the regulator. Importantly, it shows that the … existence of a central bank can be welfare-improving when the market equilibrium is driven by collateral constraints and …
Persistent link: https://www.econbiz.de/10010342820
One of the most pressing questions in the aftermath of the financial crisis is how to deal with systemically important financial institutions (SIFIs). The purpose of this paper is to review the recent literature on systemic risk and evaluate the regulation proposals in the Basel III framework...
Persistent link: https://www.econbiz.de/10010334491
taking bad assets off bank balance sheets, or can one wait till the crisis is over? We argue that an “overhang” of impaired …
Persistent link: https://www.econbiz.de/10005870915
Based on a sample of EU listed banks, we estimate the sensitivity of banks' marginal cost of debt and analyse the potential impact of the post-crisis regulatory package. We build synthetic estimates of risk in banks' books and the macroeconomic environment and argue that regulatory changes alter...
Persistent link: https://www.econbiz.de/10013014955
the literature. The second section evaluates the different drivers of the bank capital regulation …
Persistent link: https://www.econbiz.de/10013112529