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The Indian debt overhang issue is one of the major reasons that fresh investments are currently not being made in the … examines the bad debt situation in India, the circumstances under which Asset Reconstruction Companies were registered and the … towards resolving the debt problem has been limited. Given that fixed costs in setting up ARCs have already been incurred this …
Persistent link: https://www.econbiz.de/10011638458
provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …
Persistent link: https://www.econbiz.de/10010404154
financing policies, and the exposure of bank assets to crashes. The effect of the prevailing insolvency resolution mechanism … (IRM) on the probability of insolvency, loss in default, and the net value created by the bank suggests no single IRM is a … how a bailout fund financed through a tax on bank dividends could resolve bailouts without public money and without …
Persistent link: https://www.econbiz.de/10012900014
particular, we show that being a weakly capitalized bank is not related to higher holdings of domestic sovereign debt. While a … strong link is present between central bank liquidity support and sovereign holdings, opportunistic strategies or reach … advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign …
Persistent link: https://www.econbiz.de/10011978836
This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …
Persistent link: https://www.econbiz.de/10013315006
This paper contributes to the debate on liquidity in resolution by providing a quantitative assessment of liquidity … gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under … different assumptions and scenarios. The findings suggest that, while the average liquidity gaps in resolution are limited, the …
Persistent link: https://www.econbiz.de/10012313295
This paper incorporates banks and banking panics within a conventional macroeconomic framework to analyze the dynamics of a financial crisis of the kind recently experienced. We are particularly interested in characterizing the sudden and discrete nature of the banking panics as well as the...
Persistent link: https://www.econbiz.de/10011780335
Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis liter- ature has so far identified a number of distinct effects or channels that can propagate distress contagiously both directly within...
Persistent link: https://www.econbiz.de/10012942132
empirically test the predictions of a new signalling model that offers a rationale for offering two different liquidity facilities … risky than banks that accessed the DW. Our results can contribute to a better design of liquidity facilities during a …
Persistent link: https://www.econbiz.de/10011408663
of a freeze, inducing firms to hoard even more liquid assets. Liquidity panics provide a new rationale for stricter … liquidity requirements, as this policy alleviates the informational frictions in the banking sector and paradoxically can end up …
Persistent link: https://www.econbiz.de/10013248846