Showing 1 - 10 of 1,555
From 2010 to 2012, the relation between bank stock returns from European Union (EU) countries and the returns on …
Persistent link: https://www.econbiz.de/10013022926
inforamtion framework shows why the banking sector is so important to the economy, and provides a rationale for bank regulation …
Persistent link: https://www.econbiz.de/10012789112
We develop a quantitative equilibrium model of financial crises to assess the interaction between ex-post interventions in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and mitigate the severity of the recession. Ex ante, the...
Persistent link: https://www.econbiz.de/10013096860
sensitivity of deposit flows to bank performance. The fragility is stronger when the aggregate conditions in the banking system …
Persistent link: https://www.econbiz.de/10013405196
Economic theories posit that bank liability insurance is designed as serving the public interest by mitigating systemic … private interests of banks, bank borrowers, and depositors, potentially at the expense of the public interest. Empirical …-through subsidy targeted to particular classes of bank borrowers …
Persistent link: https://www.econbiz.de/10012992658
U.S. banking crisis of the 20th century. Our systemic risk measure captures both the credit risk of an individual bank … as well as a bank's position in the network. We construct linkages between all U.S. commercial banks in 1929 and 1934 so … banking crisis that occurred between 1930–33 raised systemic risk per bank by 33% and increased the riskiness of the very …
Persistent link: https://www.econbiz.de/10012906269
Why did the failure of Lehman Brothers make the financial crisis dramatically worse? The financial crisis was a process of a build-up of risk during the crisis prior to the Lehman failure. Market participants tried to preserve an option or exit by shortening maturities - the "flight from...
Persistent link: https://www.econbiz.de/10013055515
We examine the evolution of real per capita GDP around 100 systemic banking crises. Part of the costs of these crises owes to the protracted nature of recovery. On average, it takes about eight years to reach the pre-crisis level of income; the median is about 6 1⁄2 years. Five to six years...
Persistent link: https://www.econbiz.de/10013060679
Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression …
Persistent link: https://www.econbiz.de/10012869069
We propose several econometric measures of systemic risk to capture the interconnectedness among the monthly returns of hedge funds, banks, brokers, and insurance companies based on principal components analysis and Granger-causality tests. We find that all four sectors have become highly...
Persistent link: https://www.econbiz.de/10013139889