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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

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

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

Bank regulation and international financial stability: A case against the 2006 Basel framework for controlling tail risk in trading books

Alexander, Gordon J.; Baptista, Alexandre M.; Yan, Shu - In: Journal of International Money and Finance 43 (2014) C, pp. 107-130

In attempting to promote international financial stability, the Basel Committee on Banking Supervision (2006) provided a framework that sought to control the amount of tail risk that large banks around the world would take in their trading books relative to their corresponding minimum capital...

Persistent link: https://www.econbiz.de/10010869433

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

Systemic risk in the banking sector : the German model

Burghof, Hans-Peter; Gischer, Horst - In: Vierteljahreshefte zur Arbeits- und … 1 (2024) 2, pp. 155-183

As part of the completion of the European Banking Union, the decision on the organization of institutional and deposit protection is still pending. The mere linking of these two objectives, which are by no means necessarily identical in terms of content, has recently led to heated controversy....

Persistent link: https://www.econbiz.de/10015393718

Income Diversification and Bank Performance During the Financial Crisis

Vallascas, Francesco - 2012

Advocates of diversifying bank income sources often argue that diversification improves the resilience of banks during … periods of distress. To test this proposition, we analyze the impact of income diversification on the performance of Italian … financial crisis. By contrast, diversification across broad activity classes, such as lending and capital market activities, did …

Persistent link: https://www.econbiz.de/10013115014