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This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G-SIBs) impacts the market value of large banks. We analyze the stock price reactions for the 300 largest banks from 52 countries across 12 relevant regulatory announcement and...
Persistent link: https://www.econbiz.de/10010412297
Using a novel cross-European dataset on bank internationalization, the paper accounts for both organizational and …–11 European sovereign debt crisis might have modified such an impact. Ahead of the crisis (2005–07), results suggest that bank … complexity affects systemic risk via its impact on bank size, activity diversity and foreign expansion strategies. Regardless of …
Persistent link: https://www.econbiz.de/10012852995
Post-crisis reforms aim to mitigate the systemic risks that arise from global systemically important banks (G-SIBs). Based on our estimates of G-SIBs' probability of distress, we find that their resilience has improved in recent years on the back of higher capital ratios. Furthermore, by...
Persistent link: https://www.econbiz.de/10012861338
We study the relation between country financial connectedness and systemic risk for U.S. banking organizations with global exposures. Using supervisory data on U.S. banks' foreign claims, we find that banks with exposure to countries with globally connected financial markets contribute more to...
Persistent link: https://www.econbiz.de/10013492147
This paper presents an analysis of the volatility connectedness of major bank stocks in the South East Asia (SEACEN … dynamic bank volatility network. The volatility connectedness increased substantially during the US financial crisis (from … connectedness to their counterparts in other countries of the region. Finally, we show that the region's bank volatility network …
Persistent link: https://www.econbiz.de/10011810501
Fair value accounting has been argued as one contributing factor to the recent global financial crisis occurred from 2007 to 2008. However, recent empirical studies find no significant evidence for this role of fair value accounting. One reason for this inconsistency comes from the weaknesses of...
Persistent link: https://www.econbiz.de/10013063697
The global imbalance explanation of the financial crisis of 2007-09 suggests that demand for riskless assets from countries with current account surpluses created fragility in countries with current account deficits, most notably, in the United States. We examine this explanation by analyzing...
Persistent link: https://www.econbiz.de/10013145090
The working hypothesis of international financial regulation is that it should be globally harmonized. This paper contends, to the contrary, that we should be wary about the efficacy of global harmonization, and in particular, harmonization of systemic risk measurement and regulation. The thesis...
Persistent link: https://www.econbiz.de/10012896449
This paper introduces a new transmission channel of banking crises where sizable cross-border bank claims on foreign …
Persistent link: https://www.econbiz.de/10012242495
models of bank globalization that emphasize a competition channel for bank risk-taking …Using Bank for International Settlements (BIS) data on cross-border bank flows across 128 countries and over two … decades, we find that heightened bank flows are associated with improved financial stability in a recipient country's bank …
Persistent link: https://www.econbiz.de/10012934409