We present a model of bank passivity and regulatory failure. Banks with low equity positions have more incentives to be passive in liquidating bad loans. We show that they tend to hide distress from regulatory authorities and are ready to offer a higher rate of interest in order to attract...

This paper explores theoretically and empirically the link between Financial Liberalization (FL) and the banking crisis that often follow. We also investigate the proposition, classical in development economics, that FL should result in an increase in supply of funds to the real sector. To...

In this paper we attempt to identify the characteristics of banks that are most likely to be at the origin of a banking crisis following a financial liberalization (FL) process. We do this analysis in response to the observed fact that FL processes arse often followed by banking crisis that cost...

Eine positive Fortbestehensprognose eines Unternehmens beinhaltet eine mit überwiegender Wahrscheinlichkeit erwartete nachhaltige Zahlungsfähigkeit. In dem Beitrag „Die Fortbestehensprognose – Rechtliche Anforderungen und ihre betriebswirtschaftlichen Grundlagen“ der Verfasser in WPg...

This work is focused on identifying a circular pull production control system (PPCS) and make emphasis on the presence of a stability attribute. It is an introductory paper to an extended study of macroeconomic financial stability in a physically open but systemic closed system. Previous work...

A Central Counterparty (CCP) is an entity that interposes itself between transacting counterparties – a seller vis-à-vis the original buyer and a buyer vis-àvis the original seller – to quarantee execution of the transaction. Thus, the original transacting parties substitute their...

Die Prognose, ob ein Unternehmen fortbestehen wird oder nicht, hat weitreichende Konsequenzen für Eigentümer, Gläubiger und Arbeitnehmer der Gesellschaft. In Abhängigkeit von dem Prognoseergebnis sind das Vermögen und die Schulden in der Bilanz und in einem etwaigen Überschuldungsstatus...

We link banking and asset prices in a simple monetary macroeconomic model. Our main innovation is to consider how wide-spread default affects the banking system. We find that the interaction of credit, asset prices, and loan losses explains a complete spectrum of outcomes, including financial...

This paper argues that an optimal deposit insurance scheme would allow the level of insurance coverage to be determined by the market. Based on this principle, the paper proposes an insurance scheme that minimizes distortions and embodies fairness and credibility, two essential characteristics...