We study the impact of macroprudential capital buffers on banking groups' lending and risk-taking decisions, also investigating implications for internal capital markets. For identification, we exploit heterogeneity in buffers applied to other systemically important institutions, using...

Beggar-thy-neighbour in macroprudential policy? To answer this question, we study the impact of macroprudential capital buffers on banking groups’ lending and risk-taking decisions. This paper also presents the first evidence on whether banking groups respond to changes in capital buffers by...

We study the impact of macroprudential capital buffers on banking groups' lending and risk-taking decisions, also investigating implications for internal capital markets. For identification, we exploit heterogeneity in buffers applied to other systemically important institutions, using...

Stress tests have been increasingly used in recent years by regulators to foster confidence in the banking sector by not only increasing its resilience via mandatory capital increases but also by enhancing transparency to allow investors to better discriminate between banks. In this study, using...

We investigate three prominent German bank failures in the financial crisis of 2007-2008, IKB Deutsche Industriebank, Landesbank Sachsen, and Hypo Real Estate (HRE). The cases provide a unique setting to analyze the interrelation between financial reporting, regulation, and financial stability....

Applied to the European markets, this paper analyzes the price of credit risk on the Credit Default Swap (CDS) and corporate bond markets by comparing the sensitivity of the credit spreads on each market to systematic, idiosyncratic risk factors and liquidity. Our analysis confirms the existence...

"The 2010 Structural-Demographic Forecast for the 2010–2020 Decade: A Retrospective Assessment”, by P. Turchin and A. Korotayev builds on the structural-demographic theory to derive the Political Stress Indicator (PSI) and predict political instability in the US, Western Europe and UK [1]....

Applied to the European markets, this paper analyzes the price of credit risk on the Credit Default Swap (CDS) and corporate bond markets by comparing the sensitivity of the credit spreads on each market to systematic, idiosyncratic risk factors and liquidity. Our analysis confirms the existence...

The contagion potential of mark-to-market accounting rules interacting with regulatory constraints is compared to that of funding constraints in a network of banks. The fair value accounting rules were amended at the height of the crisis to break the vicious link between allegedly irrational...

Fair value accounting (FVA) rules were relaxed through an ad-hoc amendment of IAS 39 at the height of the financial crisis in October 2008. The extent to which the trade-off between financial stability and transparency implied by this measure was reflected in the reaction of bond and equity...