This paper argues that the extent of financial contagion exhibits a form of phase transition: as long as the magnitude of negative shocks affecting financial institutions are sufficiently small, a more densely connected financial network (corresponding to a more diversified pattern of interbank...

Contingent capital (cocos) instruments are debt securities that automatically co vert into equity if a predetermined trigger (given in terms of equity price or capit ratio) is breached. The dynamic incentive feature of a properly designed continge capital would encourage effective risk...

The paper analyzes the correlation between unsound corporate governance and banking crises and aims to identify, also on the basis of advice of the international organizations and of the solutions adopted by main countries, a possible configuration of a public power to «remove», in whole or in...

State intervention has always been fundamental to the banking business and today more so than ever. Not only has the State allowed banks to overcome the 2007-2009 crisis, but it has also solved their liquidity crisis that erupted in late 2011. This latest crisis - also associated to the problems...

The purpose of this work is to verify the existence of a relationship betwee stock price and publication of the company budget. The study considers a sample 131 listed European banks in the period 2002-2008. The results of empirical analysis (conducted using the value relevance analysi confirmed...

The paper analyses the legal provisions in place in the UK and forthcoming in the US and the EU related to restructuring and resolution plans. These are plans that banks should have already in place in case of a crisis and are commonly known as living wills. The paper thoroughly describes the...

In the context of current debates about the proper form of prudential regulation and proposals for the imposition of liquidity and capital ratios, the paper examines Hyman Minsky’s work as a consultant to government agencies exploring financial regulatory reform in the 1960s. As the...

Our concern in this paper is two-fold: first to see whether the determinants of bank distress and failure have been any different in the GFC from previous years: second to see whether simple measures of capital adequacy outperform their risk-weighted counterparts as predictors, despite the focus...

On June 4-5, 2014, SUERF and Baffi Finlawmetrics jointly organised a Colloquium/Conference “Money, Regulation and Growth: Financing New Growth in Europe” at Bocconi University, Milan. The present SUERF Study includes a selection of papers based on the authors’ contributions to the Milan...