This paper describes the transmission of the recent financial crisis to Japan and compares the monetary policy reactions by the Bank of Japan (BoJ) with those during the 1990s, and with reactions by other major central banks. The paper first reviews the recent literature on the origins and...

Recent studies show that cash holdings cannot be considered a mere byproduct of corporate financial decision making but is an integral part of the explicit or implicit risk management policies of firms. This paper first gives an overview of the corporate finance literature from the past few...

This paper sheds light on the financial turmoil in the insurance sector from a Belgian supervisory perspective.3 An assessment is made of the main difficulties encountered by insurers and their supervisors during the development and acceleration of the financial crisis. Particular attention is...

While most studies analysing in great detail the origins of the current financial crisis concentrate on banks, little attention has been given to the mechanisms and role of shadow banking. In this contribution the role of money market funds, commercial paper and securitization in the growth of...

SMEs have a different bank financing structure from that of large companies and thus do not enjoy the same financing conditions. This article examines the main factors that explain the interest rates on loans to SMEs and highlights the impact of the 2008 financial crisis on credit pricing policies.

The financial crisis revealed that – due to the reliance of the Hungarian banking sector on external funding – the deterioration in the liquidity position can be a significant obstacle to lending in spite of the ample forint liquidity at the system level. The Magyar Nemzeti Bank introduced...

Purpose – The purpose of this paper is to analyze the 2008‐2009 financial crisis using a behavioral view, and suggest changes in government policy and company governance to deal with the key behavioral problems. Design/methodology/approach – Behavioral elements of the crisis are identified...

Purpose – The purpose of this paper is to examine empirically whether the market discipline works, and if so, whether it is a complement or substitute of prudential regulation in the insurance markets. Market discipline is intended as “the power of … market forces … to evaluate and...

Purpose Large global banks were at the heart of the global financial crisis. In response to the crisis, the Financial Stability Board published an integrated set of policy measures, such as capital surcharges, to address the systemic and moral hazard risks associated with global systemically...

Purpose – This study aims to compare two distance-to-default methods, data-transformed maximum likelihood estimation and “naïve”, that are suitable for financial institutions. The links between these measures and asset size, Tier 1 and Tier 2 capital ratios, non-performing assets and...