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Tremendous efforts and initiatives have been proposed by policy makers to minimize the sever shocks of the recent banking crisis through variety of domestic macro gears as the international transmission shocks are evidently challenging to handle. This study aims to explore the global contagion...
Persistent link: https://www.econbiz.de/10012983997
region of an Islamic bank on the vulnerability of conventional banks to financial contagion. It is interestingly shown that … the Islamic bank assets' diversification strategy across the regions reduces the likelihood of financial contagion among …
Persistent link: https://www.econbiz.de/10012922257
This paper analyzes the evolution of the banking system sensitivity to cross-border contagion in 2006-2011. The study is performed on the basis of the BIS data on cross-border exposures and the Bankscope data on Tier 1 capital of 20 banking systems (Australia, Austria, Belgium, Canada, Finland,...
Persistent link: https://www.econbiz.de/10012928692
We consider a price-mediated contagion framework in which each bank, after an exogenous shock, may have to sell assets … banks that were part of the 2015 regulatory stress-tests. We then consider a more sophisticated model in which each bank is …
Persistent link: https://www.econbiz.de/10012932903
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This paper analyses how an external adverse shock will impact the financial situations of banks and insurance companies and how it will diffuse among these companies. In particular we explain how to disentangle the direct and indirect (contagion) effects of such a shock, how to exhibit the...
Persistent link: https://www.econbiz.de/10013033372
Theories of bank contagion often highlight the idea that financial crises frequently start as local shocks and then … Helena, Montana during the early 1890s — to test whether bank contagion existed. We find that a one standard deviation … increase in the incidence of news about a bank run elsewhere in the country lead to a 0.05 to 0.30 standard deviations surge in …
Persistent link: https://www.econbiz.de/10013062600
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