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A Coasean Approach to Bank Resolution Policy in the Eurozone

Connor, Gregory; O'Kelly, Brian G. - 2012

The Eurozone needs a bank resolution regime that can work across seventeen independent nations of diverse sizes with varying levels of financial development, limited fiscal co-responsibility, and with systemic instability induced by quick and low-cost deposit transfers across borders. We...

Persistent link: https://www.econbiz.de/10014162949

Monitoring, Bailouts, and Penalties : An Integrated Framework of Government Policies to Manage the Too Big to Fail Problem

Gong, Ning - 2013

This paper discusses optimal government bailout policy where the costs of systemic failures and moral hazard problems … are considered. We find that a three-tiered bailout policy that includes an ex post monitoring and bailout scheme for … institutions with large systemic impacts ('Too Big to Fail') is optimal. The optimal policy also requires a randomized bailout for …

Persistent link: https://www.econbiz.de/10013094393

Rigorous Capital Requirements Under Basel III : Possible Impact on Turkey's Financial Sector

Taskinsoy, John - 2018

Turkey has experienced the biggest financial and economic shock in 2001 resulting a massive overhauling of its entire … beginning providing Turkey nearly $24 billion of financial assistance between the fragile years of 1999 and 2002. After 19 Stand … investor confidence enabled Turkey becoming the 16th largest economy in the world with over $1 trillion in GDP.1 On the …

Persistent link: https://www.econbiz.de/10012908845

Effect of Banking Regulation on Performance : Evidence from Turkey

Ozkan, Serdar - 2014

. Consecutive crises in the early 2000s led to three waves of reformist banking regulations in Turkey: (1) the banking sector …. Findings also support the view that the sequence and timing of banking reforms in Turkey acted as a shield against the global …

Persistent link: https://www.econbiz.de/10013043715

Financial Stability Challenges in EU Candidate Countries - Financial Systems in the Aftermath of the Global Crisis

Bracke, Thierry - 2010

of Macedonia and Turkey. It follows a macro-prudential approach, emphasising systemic risks and the stability of …

Persistent link: https://www.econbiz.de/10013141879

Debt overhang and capital regulation

Admati, Anat R.; DeMarzo, Peter M.; Hellwig, Martin; … - 2012

We analyze shareholders' incentives to change the leverage of a firm that has already borrowed substantially. As a result of debt overhang, shareholders have incentives to resist reductions in leverage that make the remaining debt safer. This resistance is present even without any government...

Persistent link: https://www.econbiz.de/10009528814

Fallacies, irrelevant facts, and myths in the discussion of capital regulation : why bank equity is not socially expensive

Admati, Anat R.; DeMarzo, Peter M.; Hellwig, Martin; … - 2013

We examine the pervasive view that "equity is expensive" which leads to claims that high capital requirements are costly for society and would affect credit markets adversely. We find that arguments made to support this view are fallacious, irrelevant to the policy debate by confusing private...

Persistent link: https://www.econbiz.de/10010203632

Banking union through Hungarian eyes : the MNB's assessment of a possible close cooperation

Kisgergely, Kornél; Szombati, Anikó - 2014

Legislation laying down the institutional system of the Banking Union was finalised in April 2014. In accordance with the regulations, non-euro area Member States, including Hungary, may notify the ECB at any time if they wish to participate in the common system even before the euro is adopted....

Persistent link: https://www.econbiz.de/10010403527

Dealing with financial crises : how much help from research?

Pagano, Marco - 2014

Has economic research been helpful in dealing with the financial crises of the early 2000s? On the whole, the answer is negative, although there are bright spots. Economists have largely failed to predict both crises, largely because most of them were not analytically equipped to understand...

Persistent link: https://www.econbiz.de/10010413174

The missed opportunity and challenge of capital regulation

Admati, Anat R. - 2015

Capital regulation is critical to address distortions and externalities from intense conflicts of interest in banking and from the failure of markets to counter incentives for recklessness. The approaches to capital regulation in Basel III and related proposals are based on flawed analyses of...

Persistent link: https://www.econbiz.de/10011493332