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Between October 28, 2008 and June 30, 2009 over six hundred banks and bank holding companies accepted money from the …
Persistent link: https://www.econbiz.de/10012857620
Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …
Persistent link: https://www.econbiz.de/10013012968
Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …
Persistent link: https://www.econbiz.de/10011389182
After the destructive impact of the global financial crisis of 2008, many believe that pre-crisis financial market regulation did not take the "big picture" of the system suffciently into account and, subsequently, financial supervision mainly "missed the forest for the trees". As a result, the...
Persistent link: https://www.econbiz.de/10011477338
We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top … current 3% LRR might even reduce bank stability, counter to regulatory intentions. This is because the allocational effect … caused by the LRR, which makes bank loan portfolios more alike, may turn beneficial risk spreading into harmful risk …
Persistent link: https://www.econbiz.de/10013124967
the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …
Persistent link: https://www.econbiz.de/10012697108
The failure of Lehman Brothers highlighted the severe lapses in risk management and regulatory oversight that brought on and intensified the global financial crisis. This paper presents a structural credit risk model that provides useful early warning signals that regulators could have used to...
Persistent link: https://www.econbiz.de/10013035485
significantly influencing the risk-taking attitudes of bank managers. Particularly, we intend to substantiate the theory that banks … banking sectors due to a missing ability to monitor bank managers. Our results underline that these problems appear to mislead … bank managers showing an unreasonable risk-taking behavior. In a first stage, we rely on a theoretical model explaining …
Persistent link: https://www.econbiz.de/10009515838
We analyze link between mortgage-related regulatory penalties levied on banks and the level of systemic risk in the U.S. banking industry. We employ a frequency decomposition of volatility spillovers to draw conclusions about system-wide risk transmission with short-, medium-, and long-term...
Persistent link: https://www.econbiz.de/10012061369
We examine the effects of opacity on bank valuation and the synchronicity of bank equity prices over the years 2000 … rise in bank equity share prices, decrease in transparent asset holdings by banks, and greater price synchronicity …
Persistent link: https://www.econbiz.de/10013070815