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Back to the basics in banking? : a micro-analysis of banking system stability

De Jonghe, Olivier - 2009

This paper analyzes the relationship between banks’ divergent strategies toward specialization and diversification of …

Persistent link: https://www.econbiz.de/10011598573

A false sense of security : why U.S. banks diversify and does it help?

Gandhi, Priyank; Kiefer, Patrick Christian; Plazzi, Alberto - 2016

. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not … diversification may impact banks' credit supply and therefore the real economy …

Persistent link: https://www.econbiz.de/10011518813

Risk diversification by European financial conglomerates

Slijkerman, Jan Frederik; Schoenmaker, Dirk; Vries, … - 2005

diversification within large banks and financial conglomerates. We discuss the limited value of the normal distribution based … of the risk distribution. This measure is estimated and indicates better diversification benefits for conglomerates …

Persistent link: https://www.econbiz.de/10011346454

Systemic risk and sovereign debt in the Euro area

Radev, Deyan - 2013

We introduce a new measure of systemic risk, the change in the conditional joint probability of default, which assesses the effects of the interdependence in the financial system on the general default risk of sovereign debtors. We apply our measure to examine the fragility of the European...

Persistent link: https://www.econbiz.de/10010226548

Assessing systemic fragility : a probabilistic perspective

Radev, Deyan - 2014

We outline a procedure for consistent estimation of marginal and joint default risk in the euro area financial system. We interpret the latter risk as the intrinsic financial system fragility and derive several systemic fragility indicators for euro area banks and sovereigns, based on CDS...

Persistent link: https://www.econbiz.de/10010419854

The impact of revenue diversification on bank profitability and stability : empirical evidence from South Asian countries

Nisar, Shoaib; Peng, Ke; Wang, Susheng; Ashraf, Badar Nadeem - In: International Journal of Financial Studies : open … 6 (2018) 2, pp. 1-25

This paper is a contribution to the ongoing debate on the benefits and drawbacks of bank revenue diversification …. Revenue diversification may benefit banks if diversified activities are inherently less risky and possess high returns, while … commercial banks from all South Asian countries, we found that overall revenue diversification into non-interest income has a …

Persistent link: https://www.econbiz.de/10011883276

Is digital financial inclusion good for bank stability and sustainable economic development? : evidence from emerging Asia

Hasanul Banna; Alam, Md Rabiul - 2021

In this current era of the fourth industrial revolution, both the negative and positive effects of financial inclusion raise the question of whether digital finance can be a solution for financial stability through attaining sustainable economic growth or not. Hence, considering the aftermath of...

Persistent link: https://www.econbiz.de/10012500541

Bank transparency, asset and liquidity risks

Chen, Yehning; Hasan, Iftekhar; Takalo, Tuomas - 2025

We study the effects of bank transparency on both banks' asset and liquidity risks, and ultimately, on banking sector stability and welfare. We show how enhanced bank transparency increases banks' vulnerability to excessive deposit outflows, but this threat of a liquidity crisis incentivizes...

Persistent link: https://www.econbiz.de/10015375845

M-PRESS-CreditRisk : a holistic micro- and macroprudential approach to capital requirements

Tente, Natalia; Westernhagen, Natalja von; Slopek, Ulf … - 2017

M-PRESS-CreditRisk is a new top-down macro stress testing framework that can help supervisors gauge banks' capital adequacy related to credit risk. For the first time, it combines calibration of microprudential capital requirements and macroprudential buffers in a unified, coherent framework....

Persistent link: https://www.econbiz.de/10011663208

Pitfalls in the Use of Systemic Risk Measures

Löffler, Gunter - 2017

We examine pitfalls in the use of return-based measures of systemic risk contributions (SRCs). For both linear and non-linear return frameworks, assuming normal and heavy-tailed distributions, we identify non-exotic cases in which a change in a bank's systematic risk, idiosyncratic risk, size or...

Persistent link: https://www.econbiz.de/10012971890