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)-(d) thereof incorporated in Member States of the European Union (hereinafter the ‘EU'). This special ‘government bail-out regime …
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time series and the cross section. TSIZE-implied subsidies increase around the bailout of Continental Illinois in 1984 and …
Persistent link: https://www.econbiz.de/10011894404
system; any preset resolution system will be abandoned for a bailout if it would produce socially unacceptable loss … done ad hoc through Congress or should bailout authority be institutionalized in an agency? And second, should creditors of … bailed out firms be forced to accept less than full payment (or take a “haircut”) as part of the bailout? Ensuring …
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at the expense of taxpayers: the merger-bailout has increased Switzerland’s sovereign credit risk, resulting in an …
Persistent link: https://www.econbiz.de/10014349670
The economic and financial crisis of the year 2008 highlighted the need for banking sector regulation via the creation of the banking union. The Bank Recovery and Resolution Directive (BRRD) represents an important milestone in the formation of the banking union. It is supposed inter alia to...
Persistent link: https://www.econbiz.de/10012242333
Bank bailouts are not the "one-shot" events commonly described in the literature. These bailouts are instead dynamic processes in which regulators "catch" financially distressed banks; "restrict" their activities over time; and "release" the banks from restrictions at sufficiently healthy capital...
Persistent link: https://www.econbiz.de/10012224131
This paper presents a new theory that explains why it is beneficial for banks to be highly interconnected and to engage in herding behavior. It shows that these two important causes of systemic risk are interdependent and thus cannot be considered in isolation. The reason is that banks have an...
Persistent link: https://www.econbiz.de/10012061003
The Indian debt overhang issue is one of the major reasons that fresh investments are currently not being made in the scale required to promote higher growth and boost employment. Among banks the public sector banks (PSBs) are burdened with the bulk of net non-performing loans (NNPAs). These...
Persistent link: https://www.econbiz.de/10011638458