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Investor Information and Bank Instability During the Euro Crisis

Iorgova, Silvia; Ross, Chase P. - 2021

Outside of financial crises, investors have little incentive to produce private information on banks' short-term liabilities held as information-insensitive safe assets. The same does not hold true during crises. We measure daily information production using data from credit default swap spreads...

Persistent link: https://www.econbiz.de/10013243048

Comap : Mapping Contagion in the Euro Area Banking Sector

Covi, Giovanni - 2019

This paper presents a novel approach to investigate and model the network of euro area banks' large exposures within … risk of the euro area banking system based on bilateral linkages. We develop a Contagion Mapping model fully calibrated … tipping points shifting the euro area banking system from a less vulnerable state to a highly vulnerable state are a non …

Persistent link: https://www.econbiz.de/10012864120

The Making of a Continental Financial System : Lessons for Europe from Early American History

Gaspar, Vítor - 2015

Alexander Hamilton was the first U.S. Treasury Secretary from 1789 to 1795. When he started, the Federal Government was in default. During his tenure, U.S. Treasuries became the ultimate safe asset. He successfully managed expectations, achieved debt service reduction, and stabilized financial...

Persistent link: https://www.econbiz.de/10013021786

The Impact of Bailouts on the Probability of Sovereign Debt Crises : Evidence from IMF-Supported Programs

Balima, Hippolyte - 2019

This paper studies the role of IMF-supported programs in mitigating the likelihood of subsequent sovereign defaults in borrowing countries. Using a panel of 106 developing countries from 1970 to 2016 and an entropy balancing methodology, we find that IMF-supported programs significantly reduce...

Persistent link: https://www.econbiz.de/10012892896

Sovereign Debt Markets in Turbulent Times : Creditor Discrimination and Crowding-Out

Broner, Fernando - 2014

In 2007, countries in the Euro periphery were enjoying stable growth, low deficits, and low spreads. Then the financial … other countries in the Eurozone, and how they may be addressed by policies at the European level …

Persistent link: https://www.econbiz.de/10013059093

The Dynamics of Sovereign Debt Crises and Bailouts

Roch, Francisco - 2016

Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign debt crisis. Defaults may arise from negative income shocks, government impatience or a "sunspot"-coordinated buyers strike. We introduce a bailout agency, and characterize the...

Persistent link: https://www.econbiz.de/10012977831

Post-Crisis Changes in Global Bank Business Models : A New Taxonomy

Caparusso, John - 2020

The Global Financial Crisis unleashed changes in the operating and regulatory environments for large international banks. This paper proposes a novel taxonomy to identify and track business model evolution for the 30 Global Systemically Important Banks (G-SIBs). Drawing from banks' reporting, it...

Persistent link: https://www.econbiz.de/10012843301

The Global Banking Network in the Aftermath of the Crisis : Is There Evidence of De-Globalization?

Cerutti, Eugenio M. - 2017

Post-crisis dynamics show a shrinkage in the overall amount of crossborder bank lending,which has been interpreted in the literature as a retreat in financial globalization. In this paper, we argue that aggregate figures are not sufficient to support such a claim in terms ofthe overall structure...

Persistent link: https://www.econbiz.de/10012942338

Equity Returns in the Banking Sector in the Wake of the Great Recession and the European Sovereign Debt Crisis

Chan-Lau, Jorge A. - 2012

This study finds that equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk and to a lesser extent, by deteriorating funding conditions and investor sentiment....

Persistent link: https://www.econbiz.de/10013098630

Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability

Elekdag, Selim - 2020

This paper explores the determinants of profitability across large euro area banks using a novel approach based on …

Persistent link: https://www.econbiz.de/10012843521