PAVING THE WAY FOR A SUSTAINABLE RECOVERY PositiveMoney
... assets led to a fall (or a slower rate of growth) in asset prices. Some speculators were forced to sell assets in order to repay the loans that were taken out to buy the assets. Consequently, asset prices fell further, which led to further sales of assets, pushing prices down even further. As some i ...
... assets led to a fall (or a slower rate of growth) in asset prices. Some speculators were forced to sell assets in order to repay the loans that were taken out to buy the assets. Consequently, asset prices fell further, which led to further sales of assets, pushing prices down even further. As some i ...
BIS Working Papers No 118 Should banks be diversified? Evidence
... For the sake of illustration, consider the extreme case where the FI’s debt level is extremely high so that all benefits from monitoring accrue only to creditors (e.g., uninsured depositors and providers of borrowed funds). In this case, bankowners (equityholders or managers assumed to be fully alig ...
... For the sake of illustration, consider the extreme case where the FI’s debt level is extremely high so that all benefits from monitoring accrue only to creditors (e.g., uninsured depositors and providers of borrowed funds). In this case, bankowners (equityholders or managers assumed to be fully alig ...
Bulletin Contents Volume 76 No. 4, December 2013
... The global financial crisis galvanised debate about how monetary policy should respond to financial system developments. This debate is not particularly ...
... The global financial crisis galvanised debate about how monetary policy should respond to financial system developments. This debate is not particularly ...
Bank Profitability and Risk#Taking
... Higher pro…tability reduces bank risk-taking incentives in the core business, because shareholders internalize more of the downside risk realizations. However, higher pro…tability also loosens a bank’ leverage constraint and thus boosts bank incentives for large-scale risk-taking in side activities. ...
... Higher pro…tability reduces bank risk-taking incentives in the core business, because shareholders internalize more of the downside risk realizations. However, higher pro…tability also loosens a bank’ leverage constraint and thus boosts bank incentives for large-scale risk-taking in side activities. ...
Why are Banks Highly Interconnected?
... Any bank that does not pay its interbank commitments in full is taken to the bankruptcy court where bankruptcy costs are 100 percent. We first show that CDS contracts, even if renegotiated, cannot save banks 2 and 3. The ex-post CDS payments from bank 1 to each of these two banks 2 and 3 is 0.025, w ...
... Any bank that does not pay its interbank commitments in full is taken to the bankruptcy court where bankruptcy costs are 100 percent. We first show that CDS contracts, even if renegotiated, cannot save banks 2 and 3. The ex-post CDS payments from bank 1 to each of these two banks 2 and 3 is 0.025, w ...
Making a difference - Bank of The Bahamas
... $25 million in late 2005 and a subsequent $15 million private placement preference share offering in 2006. The Authorized Capital of the Bank is at 25,000,000 Shares of B$1 par value. By expanding its capital and continuously upgrading services and products, the Bank has steadily pioneered the way fin ...
... $25 million in late 2005 and a subsequent $15 million private placement preference share offering in 2006. The Authorized Capital of the Bank is at 25,000,000 Shares of B$1 par value. By expanding its capital and continuously upgrading services and products, the Bank has steadily pioneered the way fin ...
NBER WORKING PAPER SERIES Randall Morck M. Deniz Yavuz
... results to be largely independent of general state intervention, as gauged by the scope of government transfers and subsidies, state-directed investment, and politically connected firms. One very specific dimension of state power, politicization of the central bank (Crowe and Meade 2008), might aff ...
... results to be largely independent of general state intervention, as gauged by the scope of government transfers and subsidies, state-directed investment, and politically connected firms. One very specific dimension of state power, politicization of the central bank (Crowe and Meade 2008), might aff ...
Bulletin Contents Volume 76 No. 3, September 2013
... of primary interest. However, in a given period there can be a wide range of price changes, both up and down. For instance, there have been particularly sharp declines in the communication component of the CPI, which has fallen by 15 percent since mid-2011 (figure 6b). This pattern is markedly diffe ...
... of primary interest. However, in a given period there can be a wide range of price changes, both up and down. For instance, there have been particularly sharp declines in the communication component of the CPI, which has fallen by 15 percent since mid-2011 (figure 6b). This pattern is markedly diffe ...
First Commerce Bank, Lewisburg - Tennessee Bankers Association
... announced in June their intentions to work together to protect older Americans from financial abuse and exploitation as part of a commitment to the Clinton Global Initiative. Our planned efforts with AARP will help us provide bankers, older Americans, and their caregivers with the tools they need to ...
... announced in June their intentions to work together to protect older Americans from financial abuse and exploitation as part of a commitment to the Clinton Global Initiative. Our planned efforts with AARP will help us provide bankers, older Americans, and their caregivers with the tools they need to ...
Bank capital, interbank contagion, and bailout policy
... There is a longstanding and ongoing debate about whether government bailout is necessary during a financial crisis and, if so, in what form it should be provided. Some believe that government bailout of banks will save banks and their projects, minimizing a domino effect in the financial system and ...
... There is a longstanding and ongoing debate about whether government bailout is necessary during a financial crisis and, if so, in what form it should be provided. Some believe that government bailout of banks will save banks and their projects, minimizing a domino effect in the financial system and ...
Innovations in the Bank`s provision of liquidity
... Participants were able to bid to borrow central bank reserves secured against a single pool of highly liquid sovereign debt securities. A discriminatory pricing format was used, with each successful bidder required to pay their bid price. Participants’ bids were ranked in descending order by price. ...
... Participants were able to bid to borrow central bank reserves secured against a single pool of highly liquid sovereign debt securities. A discriminatory pricing format was used, with each successful bidder required to pay their bid price. Participants’ bids were ranked in descending order by price. ...
Information Asymmetry, Relationship Banking and Financing Costs
... Bank lending is crucially important for economic growth and development. Only strong and healthy banks can provide sufficient loans for expanding firms. In addition, small and medium enterprises (SMEs) cannot easily substitute bank loans with corporate debt during a credit crunch (Giesecke et al., 2 ...
... Bank lending is crucially important for economic growth and development. Only strong and healthy banks can provide sufficient loans for expanding firms. In addition, small and medium enterprises (SMEs) cannot easily substitute bank loans with corporate debt during a credit crunch (Giesecke et al., 2 ...
A Theory of Systemic Risk and Design of Prudential Bank Regulation
... Systemic Risk and Prudential Bank Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ternality effect, in which case banks find it optimal to increase the probability of surviving together, and thus failing together, by choosing asset portfolios with gr ...
... Systemic Risk and Prudential Bank Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ternality effect, in which case banks find it optimal to increase the probability of surviving together, and thus failing together, by choosing asset portfolios with gr ...
understanding the irish banking crisis - TRAP@NCI
... The financial crisis that hit Ireland in 2008 was a severe event that will have a lasting impact on the entire population This was not a unique event While the scale of the collapse is significant, there are many parallels with other global financial failures The purpose of this study is to understa ...
... The financial crisis that hit Ireland in 2008 was a severe event that will have a lasting impact on the entire population This was not a unique event While the scale of the collapse is significant, there are many parallels with other global financial failures The purpose of this study is to understa ...
Cyclicality of Credit Supply: Firm Level Evidence
... falls in recession, it is not clear if this is due to demand or supply. We focus on firms’ substitution between bank debt and public bonds using firm-level data from 1990 to 2009. Any firm that raises new debt must have a positive demand for external funds. If the same firm switches from loans to bo ...
... falls in recession, it is not clear if this is due to demand or supply. We focus on firms’ substitution between bank debt and public bonds using firm-level data from 1990 to 2009. Any firm that raises new debt must have a positive demand for external funds. If the same firm switches from loans to bo ...
The Effect of the Interbank Network Structure on Contagion and
... in the narrow sense, whereas the broad sense of systemic risk is characterized as a common shock that affects many institutions at once. The crisis has shown that systemic risk not only can take many forms, but is also highly dynamic: slowly building up in normal times, but rapidly emerging during t ...
... in the narrow sense, whereas the broad sense of systemic risk is characterized as a common shock that affects many institutions at once. The crisis has shown that systemic risk not only can take many forms, but is also highly dynamic: slowly building up in normal times, but rapidly emerging during t ...
Banking Act Report - 1991-1992
... banking supervi sors. On 5 July, the Bank obtained a Court order for the appointment of prov isional liquidators in relation 10 BCCI SA. the Lu xembourg-incorpormed bank. Similar action was taken in Luxembourg, and also in Grand Cayman in respect of BCC! Overseas. At the same time or shortly afterwa ...
... banking supervi sors. On 5 July, the Bank obtained a Court order for the appointment of prov isional liquidators in relation 10 BCCI SA. the Lu xembourg-incorpormed bank. Similar action was taken in Luxembourg, and also in Grand Cayman in respect of BCC! Overseas. At the same time or shortly afterwa ...
Competition among Financial Intermediaries When
... However, raising its stated rate is costly to the bank for two reasons. First, even without a change in size, the higher stated rate clearly decreases bank profits. Second, if the bank’s size does increase, then, even for a fixed stated rate, improved diversification increases the bank’s expected pa ...
... However, raising its stated rate is costly to the bank for two reasons. First, even without a change in size, the higher stated rate clearly decreases bank profits. Second, if the bank’s size does increase, then, even for a fixed stated rate, improved diversification increases the bank’s expected pa ...
Internal Finance versus Bank Debt
... Diamond (1991) and Rajan (1992) show that this may affect the firm’s choice between bank loans and publicly placed debt. In our paper the prospect of decreasing agency costs in time may induce the firm to borrow from a bank even when it could finance internally. The paper restricts itself to the rat ...
... Diamond (1991) and Rajan (1992) show that this may affect the firm’s choice between bank loans and publicly placed debt. In our paper the prospect of decreasing agency costs in time may induce the firm to borrow from a bank even when it could finance internally. The paper restricts itself to the rat ...
Unit four
... can offer against the possibility that you do not repay. In the case of a business the manager may well want to see well prepared, relevant documents such as profit and loss accounts and balance sheets for the most recent years. He would also ask about the expected return from the use of the money a ...
... can offer against the possibility that you do not repay. In the case of a business the manager may well want to see well prepared, relevant documents such as profit and loss accounts and balance sheets for the most recent years. He would also ask about the expected return from the use of the money a ...
Reputation, Renegotiation, and the Choice between Bank Loans
... information about the chance of his firm being in financial distress. If a firm is in financial distress, it may reflect, in some cases, the poor quality of its projects; in other cases, it may be due to reasons unrelated to project quality. In the former case the right course is for lenders to liqu ...
... information about the chance of his firm being in financial distress. If a firm is in financial distress, it may reflect, in some cases, the poor quality of its projects; in other cases, it may be due to reasons unrelated to project quality. In the former case the right course is for lenders to liqu ...
Central Bank Tools and Liquidity Shortages
... engulf the financial system more broadly with significant implications on the real economy.2 By signaling its willingness and ability to act decisively, the central bank demonstrates its intention to restore confidence in the system by avoiding “fire sales” of assets and supporting market functionin ...
... engulf the financial system more broadly with significant implications on the real economy.2 By signaling its willingness and ability to act decisively, the central bank demonstrates its intention to restore confidence in the system by avoiding “fire sales” of assets and supporting market functionin ...
BOB-Analysts-Q1-FY14
... •It significantly strengthened its Credit Monitoring process and the system for “Early Detection of Stress Accounts” to enable it to take suitable follow-up actions. •Furthermore, it also strengthened its Loan Factory set up with marketing professionals. Its Central Sales Offices (CSOs) have been st ...
... •It significantly strengthened its Credit Monitoring process and the system for “Early Detection of Stress Accounts” to enable it to take suitable follow-up actions. •Furthermore, it also strengthened its Loan Factory set up with marketing professionals. Its Central Sales Offices (CSOs) have been st ...
Aareal Bank Group – Interim Report Q1/2015
... improved, it is too early to tell whether the ECB’s expansive monetary policy will in fact trigger sustainable momentum in the euro zone – persisting beyond the short-term boost provided by factors such as lower oil prices. The euro zone continues to be burdened by the risk of Greece leaving the eur ...
... improved, it is too early to tell whether the ECB’s expansive monetary policy will in fact trigger sustainable momentum in the euro zone – persisting beyond the short-term boost provided by factors such as lower oil prices. The euro zone continues to be burdened by the risk of Greece leaving the eur ...
Journal of Financial Stability A theory of systemic risk and design of
... In this setting with multiple banks, when one bank fails, there are two conflicting effects on other banks. First, there is a reduction in the aggregate supply of funds (deposits) in the economy, and hence, in aggregate investment. This results in a recessionary spillover (a negative externality) to ...
... In this setting with multiple banks, when one bank fails, there are two conflicting effects on other banks. First, there is a reduction in the aggregate supply of funds (deposits) in the economy, and hence, in aggregate investment. This results in a recessionary spillover (a negative externality) to ...