PDP-Working Paper
... banks’ balance sheets. Since the onset of the global financial crisis, NPLs have more than tripled to 17 percent (June 20142) of total loans, from just above 5 percent in 2007. The rapid rise reflects in part the prolonged recession which has worsened the creditworthiness of borrowers, particularly ...
... banks’ balance sheets. Since the onset of the global financial crisis, NPLs have more than tripled to 17 percent (June 20142) of total loans, from just above 5 percent in 2007. The rapid rise reflects in part the prolonged recession which has worsened the creditworthiness of borrowers, particularly ...
A History of Money and Banking - Lecture 5 - cerge-ei
... *** Persson, Karl, (2010). An Economic History of Europe. Knowledge, Institutions and Growth, 600 to the Present. Cambridge University Press, Cambridge, UK. [Chapter 7: Money, Credit and Banking]. ...
... *** Persson, Karl, (2010). An Economic History of Europe. Knowledge, Institutions and Growth, 600 to the Present. Cambridge University Press, Cambridge, UK. [Chapter 7: Money, Credit and Banking]. ...
MIMIC: A Proposal for Deposit Insurance Reform - Berkeley-Haas
... country of origin but, partly as a consequence of the operations of internationally active commercial banks, shocks that originate anywhere in today’s interconnected, sophisticated, financial markets can reverberate around the globe on financial markets and on banking. The reverberations of such fi ...
... country of origin but, partly as a consequence of the operations of internationally active commercial banks, shocks that originate anywhere in today’s interconnected, sophisticated, financial markets can reverberate around the globe on financial markets and on banking. The reverberations of such fi ...
NBER WORKING PAPER SERIES PREVENTING FINANCIAL CRISES: AN INTERNATIONAL PERSPECTIVE Frederic S. Mishkin
... source of contractions in the money supply which, in turn, have lead to severe contractions in aggregate economic activity in the United States. Monetarists do not view as real financial crises events in which, despite a sharp decline in asset prices and a rise in business failures, there is no pote ...
... source of contractions in the money supply which, in turn, have lead to severe contractions in aggregate economic activity in the United States. Monetarists do not view as real financial crises events in which, despite a sharp decline in asset prices and a rise in business failures, there is no pote ...
FDIC`s Expanded Role in Bank Holding Company Insolvencies
... distribution in the event of bankruptcy, rather than funneling them to an entity destined for seizure by the FDIC. In the BNEC bankruptcy, the Chapter 7 bankruptcy trustee (the “Trustee”) brought “actual intent” and “constructive intent” fraudulent transfer claims against the FDIC and against the ...
... distribution in the event of bankruptcy, rather than funneling them to an entity destined for seizure by the FDIC. In the BNEC bankruptcy, the Chapter 7 bankruptcy trustee (the “Trustee”) brought “actual intent” and “constructive intent” fraudulent transfer claims against the FDIC and against the ...
EN EN 4. International Financial Flows and the Role of the Financial
... Banks are important actors on the financing side of the German current account. Before the crisis, the banking sector strengthened its net lending position vis-à-vis the rest of the world, switching from a net debtor to a net creditor position. German banks' incentive to increase international expos ...
... Banks are important actors on the financing side of the German current account. Before the crisis, the banking sector strengthened its net lending position vis-à-vis the rest of the world, switching from a net debtor to a net creditor position. German banks' incentive to increase international expos ...
market structure and bank competition conditions
... There are three main conditions for pure market contestability which include perfect information and the ability and/or the rights of all suppliers to make use of the best available production technology in the market, the freedom to market/advertise and enter a market with a competing product and ...
... There are three main conditions for pure market contestability which include perfect information and the ability and/or the rights of all suppliers to make use of the best available production technology in the market, the freedom to market/advertise and enter a market with a competing product and ...
The First Bank of the United States
... was a very large amount of money. The size of its capitalization made the First Bank not only the largest financial institution in the new nation but also the largest corporation of any type by far. The bank’s sale of shares was also the largest initial public Between 1800 and 1805, four more branch ...
... was a very large amount of money. The size of its capitalization made the First Bank not only the largest financial institution in the new nation but also the largest corporation of any type by far. The bank’s sale of shares was also the largest initial public Between 1800 and 1805, four more branch ...
Decision Avoidance and Deposit Interest Rate Setting
... suggesting factors other than cost influence the setting of interest rates. Previously Heffernan (2002) examining intra-bank variation in interest rate setting reported dual peaks of more and less competitive interest rates existed for financial services; an outcome attributed to bank interest rate ...
... suggesting factors other than cost influence the setting of interest rates. Previously Heffernan (2002) examining intra-bank variation in interest rate setting reported dual peaks of more and less competitive interest rates existed for financial services; an outcome attributed to bank interest rate ...
Modelling Financial Instability: A Survey of the
... what happens during a crisis (positive analysis) can lead to better policies towards preventing and resolving crises (normative analysis). This paper seeks to contribute to the understanding of the causes of financial instability by reviewing the approaches that have been taken in modelling instabil ...
... what happens during a crisis (positive analysis) can lead to better policies towards preventing and resolving crises (normative analysis). This paper seeks to contribute to the understanding of the causes of financial instability by reviewing the approaches that have been taken in modelling instabil ...
Countercyclical Foreign Currency Borrowing: Eurozone Firms
... document in this paper therefore contrasts with the existing evidence. However, the previous literature had not focused on the differences in capital regulation and therefore did not document heterogeneous lending behavior across banks of different nationality. Our findings on the role of foreign b ...
... document in this paper therefore contrasts with the existing evidence. However, the previous literature had not focused on the differences in capital regulation and therefore did not document heterogeneous lending behavior across banks of different nationality. Our findings on the role of foreign b ...
The Icelandic banking crisis and what to do about it:
... vulnerable to a liquidity crisis. These banks are heavily dependent on wholesale financing, as well as on deposits. In a liquidity crisis, each creditor believes that other creditors will refuse to roll over existing loans and refuse to extend new credit and that this will cause the bank to fail. Th ...
... vulnerable to a liquidity crisis. These banks are heavily dependent on wholesale financing, as well as on deposits. In a liquidity crisis, each creditor believes that other creditors will refuse to roll over existing loans and refuse to extend new credit and that this will cause the bank to fail. Th ...
The financial stability implications of increased capital flows for
... Definitions and data Most of the literature on capital flows to emerging market countries analyses net flows, which indicate how large the balance of external funds that enter or leave an economy is. While the composition of net capital flows matters for financial stability, net flows per se are pri ...
... Definitions and data Most of the literature on capital flows to emerging market countries analyses net flows, which indicate how large the balance of external funds that enter or leave an economy is. While the composition of net capital flows matters for financial stability, net flows per se are pri ...
SP167: Searching for a Metric for Financial Stability
... reality individual banks have differing portfolios, often reflecting differing risk/return preferences. So, typically, failures occur with the greatest probability amonst the riskiest banks. Such failures in turn generate interactions in the system more widely that may threaten the survival of other ...
... reality individual banks have differing portfolios, often reflecting differing risk/return preferences. So, typically, failures occur with the greatest probability amonst the riskiest banks. Such failures in turn generate interactions in the system more widely that may threaten the survival of other ...
Understanding Systemic Risk: The Trade
... participants through fair-value accounting, as well as spillover effects through a network of interbank exposures.2 One of their main findings is that ignoring the interactions between solvency and market liquidity seriously underestimates the importance of risks in the whole financial system. GLS f ...
... participants through fair-value accounting, as well as spillover effects through a network of interbank exposures.2 One of their main findings is that ignoring the interactions between solvency and market liquidity seriously underestimates the importance of risks in the whole financial system. GLS f ...
Resolving Large Financial Intermediaries: Banks Versus
... largely of mortgage-backed securities that they have purchased in the open market, as well as whole mortgages that they acquire from originators. Fannie Mae and Freddie Mac fund these assets largely by issuing debt, and the two companies are highly leveraged with total equity that is less than 4 per ...
... largely of mortgage-backed securities that they have purchased in the open market, as well as whole mortgages that they acquire from originators. Fannie Mae and Freddie Mac fund these assets largely by issuing debt, and the two companies are highly leveraged with total equity that is less than 4 per ...
Real Regulatory Capital Management and Dividend Payout
... strength (Miller and Rock, 1985; Baker and Wurgler, 2012; Floyd et al., 2015). However, the payment of dividends out of realized gains leaves risky assets on banks’ balance sheet and depletes safe capital assets, thus increasing solvency risk and decreasing the overall financial solidity of the ban ...
... strength (Miller and Rock, 1985; Baker and Wurgler, 2012; Floyd et al., 2015). However, the payment of dividends out of realized gains leaves risky assets on banks’ balance sheet and depletes safe capital assets, thus increasing solvency risk and decreasing the overall financial solidity of the ban ...
A Framework for Assessing International Risk to the Financial System
... Within the Bank of Canada, the financial system function is also a shared responsibility. Whereas some central banks have concentrated their relevant analytic resources in a financial stability “wing” (e.g., the Bank of England, Norges Bank), in the Bank of Canada’s case , the work is undertaken wi ...
... Within the Bank of Canada, the financial system function is also a shared responsibility. Whereas some central banks have concentrated their relevant analytic resources in a financial stability “wing” (e.g., the Bank of England, Norges Bank), in the Bank of Canada’s case , the work is undertaken wi ...
Fitch ratings: ING Bank NV Full rating report
... ING Bank is wholly owned by ING Group (A/Negative) which is a listed company. The stakes in ING Bank‟s subsidiaries (ING Belgium, the German ING DiBa, ING Direct, etc.) are directly held by ING Bank. The foreign subsidiaries are locally regulated, meaning capital and liquidity are not fully fungible ...
... ING Bank is wholly owned by ING Group (A/Negative) which is a listed company. The stakes in ING Bank‟s subsidiaries (ING Belgium, the German ING DiBa, ING Direct, etc.) are directly held by ING Bank. The foreign subsidiaries are locally regulated, meaning capital and liquidity are not fully fungible ...
CIBC Q2 Investor Presentation
... operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2017 and subsequent periods. Forward-looking statements are typically identified by the words “believe”, ...
... operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2017 and subsequent periods. Forward-looking statements are typically identified by the words “believe”, ...
Too Many To Fail: The Effect of Regulatory Forbearance on Market
... foreseeable future, they will not withdraw their deposit, even though the bank risks are at a substantially high level. In other words, depositors prefer enjoying the high-interest income provided by failing banks to withdrawing their funds from those banks, as long as they believe that enough time ...
... foreseeable future, they will not withdraw their deposit, even though the bank risks are at a substantially high level. In other words, depositors prefer enjoying the high-interest income provided by failing banks to withdrawing their funds from those banks, as long as they believe that enough time ...
Liquidity Coverage Ratio Completion Guide
... Trade finance instruments consist of trade-related obligations directly underpinned by the movement of goods or the provision of services. Amounts to be reported include items such as outstanding documentary trade letters of credit, documentary and clean collection, import bills, and export bills; a ...
... Trade finance instruments consist of trade-related obligations directly underpinned by the movement of goods or the provision of services. Amounts to be reported include items such as outstanding documentary trade letters of credit, documentary and clean collection, import bills, and export bills; a ...
financialIntermediation_KiyotakiPaper
... stabilize …nancial markets in a crisis, just as it just did recently. With the existing macroeconomic frameworks it is not possible to address this issue. In this paper we develop a macroeconomic model with an intermediation sector that allow banks to issue outside equity as well as short term debt. ...
... stabilize …nancial markets in a crisis, just as it just did recently. With the existing macroeconomic frameworks it is not possible to address this issue. In this paper we develop a macroeconomic model with an intermediation sector that allow banks to issue outside equity as well as short term debt. ...
bb12 leonello 19063690 en
... that banks obtain on the loans and thus the opportunity cost of holding reserves. Second, the return on the loans has an effect on the prices at which banks can sell assets on financial markets and thus their ability to withstand liquidity shocks. The theory provides numerous implications for the rel ...
... that banks obtain on the loans and thus the opportunity cost of holding reserves. Second, the return on the loans has an effect on the prices at which banks can sell assets on financial markets and thus their ability to withstand liquidity shocks. The theory provides numerous implications for the rel ...
Bank
A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.