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develops a methodology to detect problems at the individual bank level in an effort to identify those firms with financial … facilitate bank monitoring tasks, as well as some disaggregated subcomponents that are intended to display the relative …
Persistent link: https://www.econbiz.de/10011283443
. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank … data complementing existing evidence that financial instability is highest when bank control is capturedby small lobbies. …
Persistent link: https://www.econbiz.de/10011380029
imperfectly elastic supply of bank equity stemming from financial market segmentation. In our model, equity is costly and serves … and the design of bank stress testing. …
Persistent link: https://www.econbiz.de/10011341895
This paper describes concepts and tools behind macroprudential monitoring, and the growing importance of macroprudential tools for assessing the stability of financial systems. This paper also employs a macroprudential approach in examining financial soundness and identifying its determinants....
Persistent link: https://www.econbiz.de/10010529694
deteriorate further, which could require significant bank recapitalisation. Updated bottom-up (i.e. loan by loan) stress tests are … assumptions should be made public. The creation of the Bank Asset Management Company (BAMC) should allow recognition of problems …
Persistent link: https://www.econbiz.de/10009767739
This paper studies the impact of European bank mergers and acquisitions on changes in key safety and soundness measures …
Persistent link: https://www.econbiz.de/10009618077
We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations (constrained banks) use regulatory arbitrage while others do not. We find support for this hypothesis using trust preferred securities (TPS) issuance, a...
Persistent link: https://www.econbiz.de/10010353295
We show that market discipline, defined as the extent to which firm specific risk characteristics are re ected in market prices, eroded during the recent financial crisis in 2008. We design a novel test of changes in market discipline based on the relation between firm specific risk...
Persistent link: https://www.econbiz.de/10010226557
drawing useful lessons for regulatory reform. We argue that an important contributor to positive bank performance was a solid …
Persistent link: https://www.econbiz.de/10010227291
removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic … stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We … find that the introduction of free banking laws stimulated the creation of new banks and led to more bank failures. Our …
Persistent link: https://www.econbiz.de/10010227307