Determinants of banking system fragility: a - ECB
... shock that initially affects one institution can become systemic and infect the larger local economy. The globalization of banking implies further that shocks affecting a particular bank or country can now affect not only the local real economy but also the financial system and real economy in other ...
... shock that initially affects one institution can become systemic and infect the larger local economy. The globalization of banking implies further that shocks affecting a particular bank or country can now affect not only the local real economy but also the financial system and real economy in other ...
Determinants of Banking System Fragility: a regional perspective
... other countries. Peek and Rosengren (1997, 2000), for example, show that shocks hitting Japanese banks generate supply side effects on the real economy in the US. Similarly, Puri, Steffen and Rocholl (2011) document the transmission of the U.S. financial crisis to the behavior of linked German savin ...
... other countries. Peek and Rosengren (1997, 2000), for example, show that shocks hitting Japanese banks generate supply side effects on the real economy in the US. Similarly, Puri, Steffen and Rocholl (2011) document the transmission of the U.S. financial crisis to the behavior of linked German savin ...
Contagion of Sovereign Default Risk: the Role of Two Financial
... have already observed that during Mexico’s tequila crisis of 1994, Mexico’s neighboring countries such as Argentina and Brazil also suffered from an increase in their sovereign bond yields. Despite an extensive literature on financial contagion, there is not yet a uniform definition of what constitu ...
... have already observed that during Mexico’s tequila crisis of 1994, Mexico’s neighboring countries such as Argentina and Brazil also suffered from an increase in their sovereign bond yields. Despite an extensive literature on financial contagion, there is not yet a uniform definition of what constitu ...
International Financial Integration and Crisis Contagion ∗ Michael B. Devereux Changhua Yu
... focus mainly on perfect risk sharing for investors. Second, the mechanism is quite different. We study a channel of fire sales, in which both asset prices and quantities of assets adjust endogenously to exogenous shocks, while they focus only on the quantity adjustment of assets. Another related pa ...
... focus mainly on perfect risk sharing for investors. Second, the mechanism is quite different. We study a channel of fire sales, in which both asset prices and quantities of assets adjust endogenously to exogenous shocks, while they focus only on the quantity adjustment of assets. Another related pa ...
NBER WORKING PAPER SERIES EAST ASIA AND GLOBAL IMBALANCES:
... Among East Asian countries, most of countries (except for Hong Kong and Singapore) could experience worsening current account balances if financial markets develop further, but that effect is achieved, not through a reduction in savings rates, but through higher increases in the levels of investment ...
... Among East Asian countries, most of countries (except for Hong Kong and Singapore) could experience worsening current account balances if financial markets develop further, but that effect is achieved, not through a reduction in savings rates, but through higher increases in the levels of investment ...
The Transmission of Financial Stress and Monetary Policy
... all major asset markets, hence sidestepping the potential pitfalls from analysing spillovers within specific asset markets. The panel estimations reveal that ASEAN-5 financial stress is driven by both external and domestic determinants. US financial stress is the only significant external determinan ...
... all major asset markets, hence sidestepping the potential pitfalls from analysing spillovers within specific asset markets. The panel estimations reveal that ASEAN-5 financial stress is driven by both external and domestic determinants. US financial stress is the only significant external determinan ...
Managing Financial Crisis in an Interconnected World
... economies. The cost of such financial crises has been immense. It has drawn significant research on the subject. The literature has for the most part focused on explaining the causes of such financial crisis, the lessons that might be drawn, and the debate on the solutions for containing and managin ...
... economies. The cost of such financial crises has been immense. It has drawn significant research on the subject. The literature has for the most part focused on explaining the causes of such financial crisis, the lessons that might be drawn, and the debate on the solutions for containing and managin ...
Our currency, your problem? The global effects of the euro debt crisis
... in the government bond spread in both Italy and Spain vs. Germany (the assumption on how large is based on the statistical distribution of daily changes in the spread). Second, the movement must be motivated by a speci…c euro area event happening on that day and widely reported in the …nancial pres ...
... in the government bond spread in both Italy and Spain vs. Germany (the assumption on how large is based on the statistical distribution of daily changes in the spread). Second, the movement must be motivated by a speci…c euro area event happening on that day and widely reported in the …nancial pres ...
Financial distress and firm performance: Evidence from the Asian
... SAMPLE/DATA The countries studied in this paper are Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, and Thailand. Indonesia, Malaysia, Philippines, South Korea, and Thailand were selected because they were most directly affected by the Asian financial crisis (Mitton, 200 ...
... SAMPLE/DATA The countries studied in this paper are Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, and Thailand. Indonesia, Malaysia, Philippines, South Korea, and Thailand were selected because they were most directly affected by the Asian financial crisis (Mitton, 200 ...
Lifeplan ICFS Financial Advice Satisfaction Index
... ¡¡ Female investors continue to show a higher level of perceptions regarding their advisors than male investors. However, the results show that male investors showed a very strong increase in all three drivers of perception. ¡¡ Investors in the 30-44 age bracket show the strongest increase in all th ...
... ¡¡ Female investors continue to show a higher level of perceptions regarding their advisors than male investors. However, the results show that male investors showed a very strong increase in all three drivers of perception. ¡¡ Investors in the 30-44 age bracket show the strongest increase in all th ...
Document
... e) identify and manage efficiently risks in the financial system. We should remember that crises always come unexpected. We can foresee some standard phenomena, but not disasters which happen for the first time. Some events occurring in the global economy in recent times were alarming and difficult ...
... e) identify and manage efficiently risks in the financial system. We should remember that crises always come unexpected. We can foresee some standard phenomena, but not disasters which happen for the first time. Some events occurring in the global economy in recent times were alarming and difficult ...
Pure or Wake-up-call Contagion?
... directly bailed-out by the government or –as it often happens –because the government bails-out the domestic banks that lent to households and …rms in the …rst place. In any case, countries su¤ers from several shortcomings. First, a well-developed CDS market exists only for few countries in our samp ...
... directly bailed-out by the government or –as it often happens –because the government bails-out the domestic banks that lent to households and …rms in the …rst place. In any case, countries su¤ers from several shortcomings. First, a well-developed CDS market exists only for few countries in our samp ...
External Financial Stress and External Financing Vulnerability in Turkey: Some
... rollover of foreign loans both by the banking and by the real sectors. For example, as Kaminsky et al. (2001) show, external shocks, like the failure of Long Term Capital Management (LTCM) in 1998, may cause significant capital outflows from emerging markets1. However, significant capital outflows d ...
... rollover of foreign loans both by the banking and by the real sectors. For example, as Kaminsky et al. (2001) show, external shocks, like the failure of Long Term Capital Management (LTCM) in 1998, may cause significant capital outflows from emerging markets1. However, significant capital outflows d ...
title of the paper - economics and management
... complicated and can differ during the term of particular crisis. Therefore, in order to examine the process of financial risk contagion it is important to determine the individual channels through which contagion might occur. The knowledge of financial contagion mechanism provides more insight on ex ...
... complicated and can differ during the term of particular crisis. Therefore, in order to examine the process of financial risk contagion it is important to determine the individual channels through which contagion might occur. The knowledge of financial contagion mechanism provides more insight on ex ...
PHartmann_Paper1
... would not be subject to contagion risk, but they tend to be costly for banks, which have to hold a lot of liquid funds that cannot be invested. Pure net settlement systems can be subject to extensive systemic risk, because the netting of different payments against each other and infrequent settlemen ...
... would not be subject to contagion risk, but they tend to be costly for banks, which have to hold a lot of liquid funds that cannot be invested. Pure net settlement systems can be subject to extensive systemic risk, because the netting of different payments against each other and infrequent settlemen ...
The Argentine Experience - Federal Reserve Bank of Kansas City
... Summarizing, the banking crises of 1982 and 1989 were the results of inconsistent macroeconomic policies, together with inherent financial sector instability caused by the combination of an extended safety net for all players in the financial sector and a loose regulatory and supervisory framework. ...
... Summarizing, the banking crises of 1982 and 1989 were the results of inconsistent macroeconomic policies, together with inherent financial sector instability caused by the combination of an extended safety net for all players in the financial sector and a loose regulatory and supervisory framework. ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom
... the negative impact of sudden stops on firms’ investment. The second motive looks very much like a precautionary one too, and in fact Caballero and Panageas (2007) use for reserves the term of precautionary resources. In a sense, financial underdevelopment in the form of domestic financial constrain ...
... the negative impact of sudden stops on firms’ investment. The second motive looks very much like a precautionary one too, and in fact Caballero and Panageas (2007) use for reserves the term of precautionary resources. In a sense, financial underdevelopment in the form of domestic financial constrain ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... withdraw money from savings accounts with the expectation that the value of those assets will drop.This paper analyses what the key characteristics of certain specific financial crises were and identifies the common traits of most of the financial crises which occurred in the past century. Before th ...
... withdraw money from savings accounts with the expectation that the value of those assets will drop.This paper analyses what the key characteristics of certain specific financial crises were and identifies the common traits of most of the financial crises which occurred in the past century. Before th ...
INFINZ talk
... But the NZX-50 index stopped just short of a fresh closing high on Tuesday and overseas markets have also recovered. The sorry episode appears to be fast disappearing in the rear view mirror. However sharemarkets do not represent any country's entire economy, and some commentators argue the fallout ...
... But the NZX-50 index stopped just short of a fresh closing high on Tuesday and overseas markets have also recovered. The sorry episode appears to be fast disappearing in the rear view mirror. However sharemarkets do not represent any country's entire economy, and some commentators argue the fallout ...
Impact Of The Crisis On The Financial Systems in AFR
... What can be done to minimize dislocations from the global crisis and to continue developing the region’s financial systems? ...
... What can be done to minimize dislocations from the global crisis and to continue developing the region’s financial systems? ...
World Economic Situation and Prospects 2004
... Reduced demand for imports, i.e. for exports of others Prices, output declines globally Growth, employment declines globally ...
... Reduced demand for imports, i.e. for exports of others Prices, output declines globally Growth, employment declines globally ...
What Hazard? - Inter-American Development Bank
... Expansionary monetary policy? Pou's departure and currency basket? Fiscal devaluation? ...
... Expansionary monetary policy? Pou's departure and currency basket? Fiscal devaluation? ...
Financial Globalization
... Businesses May Be Next Target of Higher Taxes – Corporate earnings are also vulnerable to the strengthening dollar, which reduces the value of revenue from exports and foreign earnings by U.S. multinationals. And exports and foreign earnings of U.S. companies are under pressure, especially in develo ...
... Businesses May Be Next Target of Higher Taxes – Corporate earnings are also vulnerable to the strengthening dollar, which reduces the value of revenue from exports and foreign earnings by U.S. multinationals. And exports and foreign earnings of U.S. companies are under pressure, especially in develo ...
Financial contagion
Financial contagion refers to “the spread of market disturbances -- mostly on the downside -- from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows."" Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, or even regions.Financial contagion happens at both the international level and the domestic level. At the domestic level, usually the failure of a domestic bank or financial intermediary triggers transmission when it defaults on interbank liabilities and sells assets in a fire sale, thereby undermining confidence in similar banks.An example of this phenomenon is the subsequent turmoil in the United States financial markets. International financial contagion, which happens in both advanced economies and developing economies, is the transmission of financial crisis across financial markets for direct or indirect economies. However, under today's financial system, with large volume of cash flow, such as hedge fund and cross-regional operation of large banks, financial contagion usually happens simultaneously both among domestic institutions and across countries. The cause of financial contagion usually is beyond the explanation of real economy, such as the bilateral trade volume.The term financial contagion has created controversy throughout the past years. Some argue that strong linkages between countries are not necessarily financial contagion, and that financial contagion should be defined as an increase in cross-market linkages after a shock to one country, which is very hard to figure out by both theoretical model and empirical work. Also, some scholars argue that there is actually no contagion at all, just a high level of market co-movement in all periods, which is market ""interdependence.""More generally, there is controversy surrounding the usefulness of ""contagion"" as a metaphor to describe the ""catchiness"" of social phenomena, as well as debate about the application of context-specific models and concepts from biomedicine and epidemiology to explain the diffusion of perturbations within financial systems.