The financial crisis of 2007-2008 highlighted the risks that liquidity spirals pose to financial stability. We introduce a novel method for studying liquidity spirals and use this method to identify spirals before stock prices plummet and funding markets lock up. We show that liquidity spirals...

As a cornerstone of the modern financial safety net, the Lender of Last Resort (LOLR) is essential in mitigating liquidity crises and containing financial contagion. However, during periods of economic stability, risk-taking incentives in the banking sector may undermine its effectiveness. Using...

Home to more than 1 billion people, the 39 emerging market and developing economies (EMDEs) classified as being in fragile and conflict-affected situations (FCS) are plagued by instability and weak institutions. This hinders their ability to attain the robust, sustained economic growth needed...

This study investigates the effect of the recent Ghanaian banking crisis on the country's ongoing sovereign debt crisis. An Autoregressive Distributed Lag Model (ARDL) is adopted to estimate the immediate effects of Ghana's banking crisis on public debt levels using secondary data spanning the...

In this paper, we analyse data from 493 listed banks across 28 countries to investigate the impact and mechanisms through which banks' derivatives holdings influence systemic risk. Our empirical results indicate that banks' derivatives holdings significantly increase systemic risk. Regarding the...

Utilizing logit econometric models, this paper investigates the primary factors contributing to the onset of banking, inflation, and foreign exchange reserves crises in Bolivia. The analysis reveals that banking crises are more likely when the terms of trade improve, with greater monetary...

The purpose of this paper is to empirically examine the effects of capital and liquidity on bank stability as well as the existence of a potential complementary or substitute relationship between both dimensions to explain bank stability. We use a sample of 16,061 banks from 27 countries during...

The complex nature of international capital flows remains a central topic in academic debate. Despite extensive research, the relationship between capital inflows and financial system vulnerabilities remains complex and influenced by both global, regional and domestic factors that necessitate...

On March 9, 2023, Silicon Valley Bank's (SVB) stock fell 60% while customers withdrew $42 billion in deposits in the largest ever bank run. One of the underlying culprits was massive losses in SVB's long-term treasury holdings, much of which was categorized as held-to-maturity (HTM), a...

Europe's banks have long been slow to integrate across borders, but this is changing fast. 'Pan-European banks', with activities spanning several EU countries, are emerging rapidly and are likely to enhance the overall contribution of financial services to economic growth. However, financial...

This paper studies the effect of government issuance on firm issuance during banking crises using transaction-level bond and loan data from 66 countries between 1991 and 2017. Governments rarely issue loans, preferring to issue in bond markets. In contrast, firms receive most of their financing...

Using both GMM estimation and the Bayesian approaches during the period of 2007 to 2021 to examine the impacts of liquidity creation (LC) on banking stability (Bank Stability-BS) on the sample of 53 banks in 5 Southeast Asian countries (ASEAN-5), the author has become a pioneer that carries out...

We construct a novel panel dataset on insider ownership for about 600 U.S. bank holding companies from 2003 to 2014 and evaluate whether ownership structure influences banks' equity composition and recapitalization decisions around the Global Financial Crisis (GFC). Before the crisis, banks with...

This paper attempts to develop a framework for implementing the Countercyclical Capital Buffer (CCyB) in Mongolia's banking sector by identifying early warning indicators of systemic risk and examining the impact of capital adequacy on bank lending. Using quarterly data from 2000 to 2024, the...

This paper examines the pivotal role of Nicola Miraglia in steering the Banco di Napoli through a tumultuous period of economic crisis and institutional decay in the late 19th and early 20th centuries. Miraglia undertook the daunting task of managing a bank on the brink of bankruptcy due to the...