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The fiscal costs of financial instability revisited

Eschenbach, Felix; Schuknecht, Ludger - 2002

This paper conducts a comprehensive analysis of the fiscal costs of financial instability (defined as major asset price changes and including, as extreme cases, financial crises). The study identifies three channels to fiscal accounts: 1) revenue effects on capital gains, asset turnover and...

Persistent link: https://www.econbiz.de/10011604237

Financial imbalances and household welfare: empirical evidence from the EU

Stracca, Livio - 2013

This paper uses Eurobarometer survey data from 26 EU countries to evaluate whether the general public cares about financial stability and imbalances over and above their effects on key macroeconomic variables such as unemployment and inflation. I confirm previous results in the literature that...

Persistent link: https://www.econbiz.de/10011605588

Macroprudential capital requirements with non-bank finance

Dempsey, Kyle P. - 2020

I analyze the impact of raising capital requirements on the quantity, composition, and riskiness of aggregate investment in a model in which firms borrow from both bank and non-bank lenders. The bank funds loans with insured deposits and costly equity, monitors borrowers, and must maintain a...

Persistent link: https://www.econbiz.de/10012422077

Macroprudential Capital Requirements with Non-Bank Finance

Dempsey, Kyle P. - 2020

Persistent link: https://www.econbiz.de/10012832999

Bubbles, bank credit and macroprudential policies

Derviz, Alexis - 2013

We explore the ability of a macroprudential policy instrument to dampen the consequences of equity mispricing (a bubble …) and the correction thereof (the bubble bursting), as well as the consequences for real activity in a production economy … sentiment) become biased upwards/downwards. Economic activity in equilibrium is influenced by the bubble size. The presence of …

Persistent link: https://www.econbiz.de/10011605596

How repayments manipulate our perceptions about loan dynamics after a boom

Adalid, Ramón; Falagiarda, Matteo - 2018

We propose a method to decompose net lending flows into loan origination and repayments. We show that a boom in loan origination is transmitted to repayments with a very long lag, depressing the growth rate of the stock for many periods. In the euro area, repayments of the mortgage loans granted...

Persistent link: https://www.econbiz.de/10012142055

Asset prices, collateral and bank lending: The case of Covid-19 and real estate

Horan, Aoife; Jarmulska, Barbara; Ryan, Ellen - 2023

Our paper uses credit registry data for the euro area to examine how the banking system transmits asset price shocks to credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks' treatment of real estate collateral during the Covid-19 crisis. First we...

Persistent link: https://www.econbiz.de/10014374755

Asset Prices, Collateral and Bank Lending : The Case of COVID-19 and Real Estate

Horan, Aoife; Jarmulska, Barbara; Ryan, Ellen - 2023

Our paper uses credit registry data for the euro area to examine how the banking system transmits asset price shocks to credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks’ treatment of real estate collateral during the Covid-19 crisis. First we...

Persistent link: https://www.econbiz.de/10014354161

Banks and non-banks stressed: Liquidity shocks and the mitigating role of insurance companies

Sydow, Matthias; Fukker, Gábor; Dubiel-Teleszynski, Tomasz - 2024

This paper documents the extension of the system-wide stress testing framework of the ECB with the insurance sector for a more thorough assessment of risks to financial stability. The special nature of insurers is captured by the modelling of the liability side and its loss absorbing capacity of...

Persistent link: https://www.econbiz.de/10015199496

Aim, focus, shoot: The choice of appropriate and effective macroprudential instruments

Azzone, Michele; Pirovano, Mara - 2024

We examine the issue of the appropriate selection of macroprudential instruments according to the vulnerabilities identified and the policymakers' objectives using a version of the 3D DSGE model following Mendicino et al. (2020) and Hinterschweiger et al. (2021) calibrated for the euro area. We...

Persistent link: https://www.econbiz.de/10015199504