The proposed revision of the Swiss Banking Act introduces a public liquidity backstop (PLB) for distressed systemically important banks (SIBs), in part to facilitate resolution. We examine the impact of the PLB on fiscal balances, societal welfare, and the incentives of bank shareholders and...

This study investigates the demand for government securities by Kenyan banks using annual data from 2005 to 2022. Employing a fixed-effects panel regression model, the research examines the factors influencing banks' sovereign debt holdings and their implications for systemic risk. Key findings...

This study investigates the demand for government securities by Kenyan banks using annual data from 2005 to 2022. Employing a fixed-effects panel regression model, the research examines the factors influencing banks' sovereign debt holdings and their implications for systemic risk. Key findings...

The evidence of financial globalization and the rapid and uniform contagion that it entails among the different international financial markets, have been exposed after the 2008 crisis outbreak, as well as the different chapters of financial stress that have been experienced since then, such as...

Online platforms have transformed how we live. This has raised concerns around how such platforms impact citizens' constitutionally-protected rights and freedoms, such as the freedom of expression and information, right to privacy, and protection from discrimination. To hold online platforms to...

The volatile value of digital assets, especially crypto-assets, makes them risky options for investors. This inherent risk limits both their market size and the purposes for which they are used, thus reducing the possibility of systemic risk arising. But digital assets and the mainstream...

Liquidity can evaporate quickly and trigger system-wide stress. This has been observed in several recent episodes, including the "dash for cash" during the COVID-19 pandemic, the liquidity stress faced by GBP funds following liability-driven investment strategies in September 2022, and the...

This report provides a compliance assessment of the implementation of the Recommendation of the European Systemic Risk Board of 2 December 2021 on reform of money market funds (ESRB/2021/9) (hereinafter the "Recommendation") by its addressee, the European Commission (hereinafter the "Commission").

Using panel data spanning 2004-2023 of 21 countries in the MENA (Middle East and North Africa) region, we measure systemic risk and assess its influence on key banking sector performance indicators, including financial stability (proxied by commercial bank branches per 100,000 adults), providing...

In this paper, we explore the relationship between node nestedness contribution and network stability in financial networks. We rely on data from the Brazilian interbank market. For each bank in the network, we computed the individual nestedness contribution (INC), along with two measures of...

In the context of an ever-evolving global economy, ASEAN companies face dynamic systemic risk that reshapes their financial interrelationships. This study examines the transmission of these risks using advanced graph theory techniques, particularly the measurement of eigenvector centrality based...

This paper investigates the dynamic interdependencies between the European insurance sector and key financial markets-equity, bond, and banking-by extending the Generalized Forecast Error Variance Decomposition framework to a broad set of performance and risk indicators. Our empirical analysis,...

This technical note focuses on systemic risk analysis and stress testing as part of the Slovak Republic's Financial Sector Assessment Program. The FSAP for the Slovak Republic implemented an extensive analysis of systemic risks and assessed the resilience of the banking sector. It identified key...

The technical assistance aimed to enhance the Financial Stability Report (FSR) of the Central Bank of Curaçao and Sint Maarten. It reviewed the 2023 FSR and discussed the report's composition and the related financial stability analyses and assessments. In particular, the mission helped the...

This paper examines whether global systemically important banks (G-SIBs) engage in window-dressing behavior to circumvent or reduce regulatory requirements, increasing vul- nerability to economic shocks. Using a comprehensive global bank sample, we uncover ev- idence of such practices: G-SIBs...

The withdrawal of public sector intervention from Malta's housing market commenced in the early 1990s, while financial markets were liberalised in 1994. These developments were likely behind the significant expansion in credit and house price appreciation experienced over the past two decades,...

The proposed revision of the Swiss Banking Act introduces a public liquidity backstop (PLB) for distressed systemically important banks (SIBs), in part to facilitate resolution. We examine the impact of the PLB on fiscal balances, societal welfare, and the incentives of bank shareholders and...