CoCo bonds are a predestine instrument to enhance banks’ resilience as they combine the advantages of debt and equity instruments. Based on the combination thereof, CoCo bonds are counted either towards the going- (AT1) or gone-concern (T2) capital of a bank. In this paper, we empirically...

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the "cliff-effect", which refers to sudden...

IFRS 9 substantially affects the financial sector by profoundly changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of financial stability. We shed light on two effects. First, the "cliff-effect", which...

This paper assesses the predictive power of systemic risk measures (SRM) for bank defaults by applying a two-staged probit model. Initially, bank defaults are predicted using only idiosyncratic variables. The model is then amended with SRM, which should improve the forecasting accuracy under the...

After the 2007 financial crises, the idea of contingent convertible (CoCo) capital was revived and manifold proposed as a means to stabilize individual banks, and hence the entire banking system. The purpose of this paper is to empirically test, whether CoCo-bonds indeed improve the stability of...

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the “cliff-effect”, which refers to...

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the "cliff-effect", which refers to sudden...