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-ins create disruption costs in the economy. When country asymmetry is large, resolution policies exhibit reduced contributions to …
Persistent link: https://www.econbiz.de/10011978809
This study investigates the shock-absorbing properties of a banking union by providing a detailed comparison between the way regional financial shocks have been absorbed at the federal level in the US, but have led to severe regional (national) financial dislocation and tensions in the euro...
Persistent link: https://www.econbiz.de/10010529306
This study investigates the shock-absorbing properties of a banking union by providing a detailed comparison between the way regional financial shocks have been absorbed at the federal level in the US, but have led to severe regional (national) financial dislocation and tensions in Europe and...
Persistent link: https://www.econbiz.de/10011334996
designing, 'special resolution' mechanisms for financial institutions. The first generation of such mechanisms were based on the … 'second generation' resolution mechanisms — have been developed. First, there has been a realization that the level of … complexity is such that resolution ex post is impossible without careful planning by supervisors ex ante. Second, this planning …
Persistent link: https://www.econbiz.de/10013059020
The handling of cross-border banks in difficulties gives rise to coordination problems between home and host countries. Goodhart and Schoenmaker (2006, 2009) have suggested to implement an ex ante burden sharing mechanism to overcome the co-ordination failure of national authorities. While...
Persistent link: https://www.econbiz.de/10013132807
Banking regulation has proven to be inadequate to guard systemic stability in the recent financial crisis. Central banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability. Using a model of a systemic bank suffering from liquidity...
Persistent link: https://www.econbiz.de/10013141340
Banking regulation has proven to be inadequate to guard systemic stability in the recent financial crisis. Central banks have provided liquidity and ministries of finance have set up rescue programmes to restore confidence and stability. Using a model of a systemic bank suffering from liquidity...
Persistent link: https://www.econbiz.de/10013147287
We investigate the relationship of central bank independence and banks' systemic risk measures. Our results support the case for central bank independence, revealing that central bank independence has a robust, negative, and significant impact on the contribution and exposure of a bank to...
Persistent link: https://www.econbiz.de/10012232865
We ask whether regulatory intervention in the form of prompt corrective action that seeks to bring troubled banks back to health by imposing temporary restrictions and increasing regulatory monitoring reverses borrower runs. Using the Indian PCA regime and exploiting the sharp discontinuity...
Persistent link: https://www.econbiz.de/10013211209
This paper examines the relationship between the quality of banking supervision and governance of the supervisory agency. The analysis is based on indices constructed from the assessment of the Basel Core Principles for Effective Banking Supervision that measure the quality of banking...
Persistent link: https://www.econbiz.de/10014210725